Consider the following structure of an overlapping generations model with capital and production. Young people provide labour to the market so that they can earn:

In the overlapping generations model, explain how saving responds to changes in the wage rate and the interest rate.

Suppose a country’s population grows by 1% per annum, and its labour efficiency grows by 2% per annum. Then, according to the Solow model with technological progress, the steady-state growth rate of capital per effective worker is ______.

In an economic model:

Describe Lewis model of development in an economy with unlimited supply of labour. IsLewis model really capital driven? Give reasons.

Which of the following graphs correctly indicates the impact of lower population growth on the steady-state level of capital per worker in the Solow model with population growth?