Please answer the following questions:
(a) (5 points) Write down the two fundamental equations of the Solow growth model, briefly
explaining each symbol, and graph their relationship.
(b) (20 points) Use the Solow growth model to explain how one-off efficiency gains due to
closer EU integration might be amplified by an increase in investment and savings.
This problem set is due in hardcopy (to the departmental office, EM023) and by email to stephen.kinsella@ul.ie by Monday 20 November.