Two countries, Highland and Lowland, are described by the Solow growth model without technological progress. They have the same Cobb-Douglas production function given as Y = F(K,L) = Kll, but with different quantities of capital and labor. Highland saves 32 percent of its income, while Lowland saves 8 percent. Highland has a population growth of 1 percent per year, while Lowland has a population growth of 5 percent. Capital depreciates in Highland at a rate of 5 percent per year, but in Lowland, capital depreciates only 1 percent per year. e. How else might you explain the large difference in income between Highland and Lowland? f. What sets of policies would you recommend the government of Lowland to undertake in order for their income to increase to a level closer to that of Highland? Two countries, Highland and Lowland, are described by the Solow growth model without technological progress. They have the same Cobb-Douglas production function given as Y = F(K,L) = Kll, but with different quantities of capital and labor. Highland saves 32 percent of its income, while Lowland saves 8 percent. Highland has a population growth of 1 percent per year, while Lowland has a population growth of 5 percent. Capital depreciates in Highland at a rate of 5 percent per year, but in Lowland, capital depreciates only 1 percent per year. e. How else might you explain the large difference in income between Highland and Lowland? f. What sets of policies would you recommend the government of Lowland to undertake in order for their income to increase to a level closer to that of Highland