Consider the following production functions for countries A and B.

Country A: Y = 100K^0.4L^0.6

Country B: Y = 200K^0.3L^0.7

During 2020, the growth rate of capital was 5 % in country A and 10 % in country B whilst the growth rate of labour is 4 % in both country A and country B. During this year country A's technological (Solow residual) growth was 3 % in country A and 6 % in country B.

1)Research and Development (R&D) expenditures leading to higher technology in country B doubles whilst in country A remain the same.

2) Saving rate in country A doubles whilst consumption rate in country B increases by 50