Consider the Harrod-Domar growth model:

(a) Define the ICOR,

(b) What determines the rate of economic growth under the Harrod-Domar growth model,

(c) What are the model's policy recommendations to accelerate growth?

Next, consider the Solow growth model:

(a) what does the model suggest regarding the role of productivity growth versus factor deepening in explaining output growth,

(b) how is the model used to measure the role of technological change (TFP growth) in explaining the part the observed growth due to technological change, and

(c) explain the model's predictions regarding rates of growth between richer and poorer economies? Are the assumptions used in the Solow Model to reach its predictions credible? Does the prediction fit the empirical observations?