Economic growth viewed through the Solow model. U.S. and France had similar economic paths in terms of growth from 1950 to 1980. In particular, the average annual growth of GDP per capita in France was around 4% from 1950 to 1965, and then from 1965 to 1980 it was around 3%. The U.S. GDP per capita increased by annual average of 3% from 1950 to 1980. During these years, in both countries about half of the population was working, and there was no significant change in the employment population ratio. However, from 1980 to 2010, the economic paths of the two countries starting differentiating. Specifically, while the U.S. continued growing at the same pace, France's growth slowed down to an average annual rate of around 2%. During this time, the employment to population ratio for France was declining by an annual average of 1%. The employment to population ratio for the U.S. continued to remain constant. During 1950 - 2010, both countries are assumed to share the same population growth of 2% per year, the same constant capital depreciation rate d and the same constant savings rate s. Further, assume that production in both countries follows a Cobb-Douglas function: Y = AK^(1/3)L^(2/3). i) (5 points) As explained in one of the case studies, why did France have a slightly higher growth rate than the U.S. from 1950 to 1980? Hint: Recall the characteristics of the Cobb-Douglas function and how that apply to France differently from the U.S. iii) (15 points) Consider the period from 1950 to 1980. How does population growth affect GDP per capita in the long-run? How does population growth affect GDP level in the long-run? How about its effects on capital per worker? Answer in relation to any one of the two countries. Hint: Recall that during 1950 - 1980 the employment to population ratio is constant. Consider the economies of France and the U.S. in question 11. Use the growth accounting equation and the steady state solution of GDP per capita to compute the average annual growth rate of TFP (in %) in France from 1965 to 1980. Round your answer to one decimal place and omit the % sign in your answer. (5 points) Consider the economies of France and the U.S. in question 11. Use the growth accounting equation and the steady state solution of GDP per capita to compute the average annual growth rate of TFP (in %) in the U.S. from 1965 to 1980. Round your answer to one decimal place and omit the % sign in your answer. (5 points) Consider the economies of France and the U.S. in question 11. Suppose that the TFP in both countries grows at the same average annual rate you found in question 12 and 13. Then, what can account for the decline in the annual average growth rate of GDP per capita in France from 1980? Hint: Use the growth accounting equation and the steady state solution. Economic growth viewed through the Solow model. U.S. and France had similar economic paths in terms of growth from 1950 to 1980. In particular, the average annual growth of GDP per capita in France was around 4% from 1950 to 1965, and then from 1965 to 1980 it was around 3%. The U.S. GDP per capita increased by annual average of 3% from 1950 to 1980. During these years, in both countries about half of the population was working, and there was no significant change in the employment population ratio. However, from 1980 to 2010, the economic paths of the two countries starting differentiating. Specifically, while the U.S. continued growing at the same pace, France's growth slowed down to an average annual rate of around 2%. During this time, the employment to population ratio for France was declining by an annual average of 1%. The employment to population ratio for the U.S. continued to remain constant. During 1950 - 2010, both countries are assumed to share the same population growth of 2% per year, the same constant capital depreciation rate d and the same constant savings rate s. Further, assume that production in both countries follows a Cobb-Douglas function: Y = AK^(1/3)L^(2/3). i) (5 points) As explained in one of the case studies, why did France have a slightly higher growth rate than the U.S. from 1950 to 1980? Hint: Recall the characteristics of the Cobb-Douglas function and how that apply to France differently from the U.S. iii) (15 points) Consider the period from 1950 to 1980. How does population growth affect GDP per capita in the long-run? How does population growth affect GDP level in the long-run? How about its effects on capital per worker? Answer in relation to any one of the two countries. Hint: Recall that during 1950 - 1980 the employment to population ratio is constant. Consider the economies of France and the U.S. in question 11. Use the growth accounting equation and the steady state solution of GDP per capita to compute the average annual growth rate of TFP (in %) in France from 1965 to 1980. Round your answer to one decimal place and omit the % sign in your answer. (5 points) Consider the economies of France and the U.S. in question 11. Use the growth accounting equation and the steady state solution of GDP per capita to compute the average annual growth rate of TFP (in %) in the U.S. from 1965 to 1980. Round your answer to one decimal place and omit the % sign in your answer. (5 points) Consider the economies of France and the U.S. in question 11. Suppose that the TFP in both countries grows at the same average annual rate you found in question 12 and 13. Then, what can account for the decline in the annual average growth rate of GDP per capita in France from 1980? Hint: Use the growth accounting equation and the steady state solution