B4: Solow model predictions Questions 37-42 relate to the data from the Penn World Tables in the following table: Pair Country Output per worker in Savings Rate (Average Human Capital Index 2019 (PPP US$) 1990-2019) in 2019 Thailand $24,221 27.3% 2.67 A Bolivia $13,589 13.5% 2.84 Turkey $39,741 25.0% 2.36 B Niger $2,443 16.6% 1.20 Canada $74.782 24.7% 3.69 C New Zealand $64,150 22.1% 3.30 B4 (a): Basic Solow model Suppose that each country's aggregate production function can be approximated by the Cobb-Douglas production function: Y = AK Li . Suppose, in addition, that the growth rates of the workforce, 12, the rate of depreciation, O, and TFP, A, for each pair of countries are equal. Question 37 The actual ratios of output per worker for country pairs A, B and C, respectively, are1.33; 4.03 and 1.08 1.78; 16.27 and 1.17 1.26; 1.14 and 1.04 2.02; 1.51 and 1.12 Question 38 The basic Solow model predicts that, for each country pair ? = 1, 2 the ratio of output per worker, yi, would depend on savings per worker, S;, according to 19/- y1 $1 y2 O y1 y2 O y1 S1 U2 $2 O 91 y2 82