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Could you please answer these two questions? 1- If two economies are identical except for their...

Could you please answer these two questions?

1- If two economies are identical except for their population growth rate, then the economy with the higher population growth rate will have:
A. higher steady-state output per worker.
B. higher steady-state capital per worker.
C. lower steady-state depreciation rates.
D. lower steady-state capital per worker.


2- if the population growth rate decreases in an economy described by the Solow growth model, the line representing population growth and depreciation will.
A. Become steeper.
B. Become flatter.
C. Stay the same.
D. Intersect the investment curve at the same point.
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Answer #1

1.Solution:-.option D is correct.

D. lower steady-state capital per worker.

Explaination:- If two economies are identical except for their population growth rate, then the economy with the higher population growth rate will have lower steady-statelevels of capital, output, and consumption per worker.

2.Solution:-option B is correct.

B. Become flatter.

Explaination:-if the population growth rate decreases in an economy described by the Solow growth model, the line representing population growth and depreciation will pivot clockwise.Decreasing the rate of population growth shifts the line downward.

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