in Chapter 5.)

(a) Construct a graph with h . >h on the vertical axis and A>h on the horizontal axis. In the graph, plot two lines: h . h = mecua A h b and h . >h = g. (Note that we’ve assumed g = 1.) What do these two lines mean, and what is the signifi cance of the point where they intersect?

(b) Starting from steady state, analyze the short-run and long-run effects of an increase in m on the growth rate of h.

(c) Plot the behavior of h>A over time.

(d) Plot the behavior of h(t) over time (on a graph with a log scale).

(e) Discuss the consequences of an increase in openness to technology transfer on an economy’s technological sophistication.