QUESTION:

Government putting in more effort to increase long-run living standards of their population. Analyze the following measures using the Solow model?

a.Offer higher interest rate on savings and make them tax free.

b.Pursue the policies to decrease the population growth rate.

c.A one-year tax break on high-tech imports to improve in productivity.

d.How does endogenous growth theory possibly change government thinking about the effectiveness of above pro-growth policies?