1. Derive the steady-state condition in terms of the equilibrium capital stock per person, k ∗ , starting from the law of motion for total capital, in a Solow model with positive population growth.
2. Consider a Solow model with population growth but no technology growth, Y = F(K, L). Explain what happens to the steady-state and transition path for income per worker when a war destroys both a large chunk of the population and a large chunk of the capital stock.
3. Take two countries with different values of all parameters in the Solow model. Contrast and compare the long-run convergence of these two countries with and without technological progress.
4. Explain, in words, the golden rule condition for capital in the Solow model with and without population growth (no technology growth).