1. Suppose two countries have the same savings and depreciation rates. The Solow model predicts that (a) these countries

[answerhappygod]

1. Suppose two countries have the same savings and depreciation
rates. The Solow model predicts that
(a) these countries will converge regardless of total factor
productivity.
(b) these countries will converge in capital stock but not in
output.
(c) these countries will converge in output but not in capital
stock.
(d) these countries will converge only if total factor productivity
is the same.
2. In the Solow model, for a given depreciation rate and a given
total factor productivity, a higher savings rate always
predicts
(a) higher GDP and higher consumption.
(b) higher capital stock and higher consumption.
(c) higher GDP and lower capital stock.
(d) higher capital stock and higher investment.