9)What is the relationship between the rate of saving, the amount of saving, investment, capital accumulation and the size of the capital stock in the macro-economy?

(10)Think about and answer the following:

(a) How can government POLICY raise the RATE OF SAVING, "s", in an economy?

(b) What are some INSTITUTIONS that appear to encourage savings in a society?

(c) How would two countries, say the USA and Egypt, compare with respect to the institutions you came up with?

(d) Given your answer to (c), can you conclude anything about the growth prospects for Egypt and the USA?

(11) It would seem that a higher Steady State level of Y/L (y*) and K/L (k*) is a good thing. We know that a high level of "s" leads to a higher Steady State. Show with diagrams why a rate of saving of, say, 80 or 90 percent may not be so good as far as the people in the economy are concerned.

(12) With respect to the macro-economic production function, what is the difference between the overall level of technology (A), and the type of technology known as worker Efficiency, or worker effectiveness? (Worker efficiency is called the "g" in the Solow Model.)

That is, how would you distinguish overall change in technology in the macro-economy from the technical change embodied in a rise in worker effectiveness? If worker effectiveness gives rise to sustained increases in the economy's standard of living, even in the Steady State, can the overall level of technology impact the result as well?