Question 1: In the following Solow growth model, consider the capital-labor ratio K* satisfying
S (K*)= (n +) K*
What is K* called? What is k at K? Explain equation1 in words then explain carefully how this is related to the Solow model diagram.
Question 2: Present and Explain the diagrammatic model that shows the possible need for a Big Push, using your own words to express the main points.