Question: Consider the simple version of the Solow model we discussed, and focus specifically on the long run (steady state). a. What variables within this model

Consider the simple version of the Solow model we discussed, and focus specifically on the long run (steady state).

a. What variables within this model can increase the growth rate of output per capita? Explain the intuition behind each.

b. What variables within this model can increase the level of output per capita? Explain the intuition behind each.

c. Which real-world factors that may be important for people's prosperity are not included in our simple version of the Solow model? Briefly discuss them.

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