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(a) (-4 pts) First let's think theoretically about the model. {I.e., without referencing the details of the spreadsheet.) Think about the growth in capitalrlabor ratio
(a) (-4 pts) First let's think theoretically about the model. {I.e., without referencing the details of the spreadsheet.) Think about the growth in capitalrlabor ratio in France. Given that France suffered a large drop in capital-labor ratio during WWII, what does the Solow model say about what growth should he in the 1950s? (I.e., fast? slow? can't tell?) What should happen to that growth rate over time and why? Would you expect the growth in France in the 19503 to be sustained forever? Why or why not
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