Calculations

Part 1

If alpha=1/2 then the co-efficient of saving in the Solow model with technical progress should be equal to

A) 1

B) 3/4

C)1/4

Calculations Part 2

Suppose that y=k^(1/2)h^(1/2). Calculate the ratio of h(t)/k(t) if k(t+1)-k(t)=0.2y(t) and h(t+1)-h(t)=.22y(t) in percentage.

A) 110%

B) 5%

C=0.5%