Compare and contrast the assumptions of the Malthus and Solow models of growth and their conclusions about the determinants of growth.
a. Compare and contrast the assumptions of the Malthus and Solow models of growth and their conclusions about the determinants of growth. How do the models’ predictions relate to the empirical evidence on growth?
b. Consider the Solow model. Consider an economy with capital per worker below the steady state level. Show in a graph and explain in words what will happen to the economy over time.
