Both 1 and 2

1 only

2 only

Neither 1 nor 2

The poor country may have more rapid population growth

The rich country may have more human capital.

The poor country may have a higher saving ratio.

The rich country may be more open to the world economy.

Both 1 and 2

1 only

2 only

Neither 1 nor 2

They assume the production function shifts upwards whenever the stock of physical capital increases.

They suggest that if the level of investment is higher than depreciation, then there could be sustained growth.

They are called endogenous growth theories.

They argue that increasing the saving ratio will have only a temporary effect on output per worker.

Simply wait for the labour market to return output to the potential level.

Apply a contractionary fiscal policy.

Announce a credible zero target for inflation.

Apply a supply-side policy to shift LAS to the right?