• 1: By Using the Solow Model, analyze the   impact on steady-state levels of output and capital stock of the following   changes.   
• a. If depreciation increased by 20 percent.   
• b. The population growth rate plummets by 2 percent.   
• c. Productivity of Capital declined by 50 percent.   
• d. The saving rate increased by 50 percent 
•   e. All the changes (a – d) happened simultaneously.
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• 2: In the case of Pakistan’s economy, write down in your own   words the implications of the following two situations on the parameters   (such as depreciation, population growth, productivity, and saving rate) of the   Solow Model 
• a. Situation 1: Extreme wave of Covid-19 leading towards mobility   restrictions. 
• b. Situation 2: Russian attack on Ukraine lead to more uncertainty.   
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