The below figure shows the investment rates (or saving rates) for Albania, Botswana, and Turkey from 1970 to 2014. Everything else equal, using the Solow model, which country would you anticipate to have the highest growth rate during the last 10 years? 70% 60% 50% 40% 30% 20% 10% 0% -Albania Botswana -Turkey 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 Albania Botswana O Turkey Based on the Solow model, they should all have the same growth rate.

The below figure shows the investment rates (or saving rates) for Albania, Botswana, and Turkey from 1970 to 2014. Everything else equal, using the Solow model, which country would you anticipate to have the highest growth rate during the last 10 years? 70% 60% 50% 40% 30% 20% 10% 0% -Albania Botswana -Turkey 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 Albania Botswana O Turkey Based on the Solow model, they should all have the same growth rate.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

The below figure shows the investment rates (or saving rates) for Albania, Botswana, and Turkey from 1970 to 2014. Everything else equal,
using the Solow model, which country would you anticipate to have the highest growth rate during the last 10 years?
70%
60%
50%
40%
Mamy
30%
20%
10%
0%
Albania -Botswana
1970 1973
O Albania
O Botswana
-----Turkey
1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012
Turkey
O Based on the Solow model, they should all have the same growth rate.

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