Q4

a.Explain the impact of rise in rate of capital dilution (based on population growth = n) on the speed of convergence to steady state in the context of Solow growth model. Explain in terms of the change in the speed of convergence equation with properly explained notations and a well labeled graph as explained in the appendix for Chapter 3 to answer this question. (3 +3 = 6 marks)

b.Use a well labeled graph depicting the Malthusian model to show what happens to a country's population size and per capita income in the short run and in the long run due to COVID-19 in which productivity of workers is adversely affected suggesting less output is produced now (Y is falling). Explain your answer in few sentences.