1. Assume we are in the basic Solow model. Two economies are in the transition to their long-run equilibrium. Economy 1's GDP per-capita is growing at 4% while Economy2'sGDPper-capitaisgrowingat3%.Botheconomieshave:=0.2,=1/3,

= 0.1, and a current level of capital per-capita of = 1. Using the lecture notes' formulaforthegrowthrateof,whatistheleveloftechnologyofEconomy1(₁) and Economy 2 (₂)?

1. ₁=1.1 and₂=1.
2. ₁=1.1 and₂=0.95.
3. ₁=0.95and₂=0.8.
4. ₁=0.8 and₂=0.9