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5. Consider two countries with the same production functions, depreciation rate, and popu-
lation growth rate: f (k) = k, = 0.05, and n = 0.02. In country 1, we have s1 = 0.5 and
g1 = 0.02. In country 2, we have g2 = 0.01.
a) For what value of s2 will k1 = k2 ?
b) Which country will have a higher kgold?
c) Will the two countries have the same growth rates of output and output per effective
worker?

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