1. Explain why lower education could lead to lower output and lower economic growth. In the Solow model.
2. Show graphically the effect of lower education in the Solow model.
3. Another channel that the text mentions is government spending. Explain why lower government spending can have a negative effect on economic growth and output. (There is no government in the model, but you can assume that government spending is a type of investment.) Describe how you would model the change in the Solow model. If it helps you, you can draw a Solow diagram.