Multiple Choice
If we define and
As the saving rates,
As the depreciation rates, and
And
As productivity in Countries 1 and 2, respectively, and the production function per capita is given by
In both countries, the Solow model predicts that the ratio of GDP per worker in Country 1 relative to Country 2 is:
A) .
B) .
C) .
D) .
E) .
Correct Answer:
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