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

(b) Starting from steady state, analyze the short-run and long-run effects of an increase in 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 technol- ogy transfer on an economy's technological sophistication.