N5

1. Imagine that we have two countries with the same parameters (same A, B, s, d, and n). One of them is rich and the other is poor. Which one of the two will grow faster? Why? Will those two countries eventually catch up?

2. If s = 0.42, A = 4, B = 4, d= 0.44, h*= 60,000 and n = 0.2, the growth rate converges to some value as time goes to infinity. What is this value?

3. For these specific parameters, say that this country has a GDP (Y) value of $ 752 billion. What is the level of consumption?

4. What will be the GDP next year?