Please try not to write by hand

(a) (10 points) Which of the three hypothesesculture, geography, or institutions would be most likely to View foreign aid as essential for economic development? Brieyr explain. (b) (5 points) Suppose we observe the following growth rates in various economies. A European economy: g(Y/L) = 0.03, 9(K/L) = 0.03. A Latin American economy: g(Y/L) = 0.02, g(K/L) = 0.01. An Asian economy: 9(Y/L) = 0.06, 9(K/L) = 0.15. Using the data above, discuss whether or not each economy is on its balanced growth path. (c) (5 points) For each economy above compute the growth rate of TFP1 assuming that the share of capital in total income equals 1/3