We are going to compare two countries, France and Belarus. The average saving rate in France is 23%, while in Belarus it is 28% (a) Assume the countries are identical in d, A, alpha = 1/3. Which country would the Solow model predict to have the higher per capita real GDP? [Hint, how does s affect k, y?] (b) However, you find out the steady-state real per capita GDP in each of the countries is $49,500 in France, and $20,000 in Belarus. Given these values for y, back out the ratio of TFP (A) that would explain these differences. (Hint: look at a ratio of y for France over y for Chile) We are going to compare two countries, France and Belarus. The average saving rate in France is 23%, while in Belarus it is 28% (a) Assume the countries are identical in d, A, alpha = 1/3. Which country would the Solow model predict to have the higher per capita real GDP? [Hint, how does s affect k, y?] (b) However, you find out the steady-state real per capita GDP in each of the countries is $49,500 in France, and $20,000 in Belarus. Given these values for y, back out the ratio of TFP (A) that would explain these differences. (Hint: look at a ratio of y for France over y for Chile)