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In country 1 the rate of investment is 2% and in country 2 it is 12%. The two countries have the same rate of depreciation and there is no growth in...
In country 1 the rate of investment is 2% and in country 2 it is 12%. The two countries have the same rate of depreciation and there is no growth in its labor force. Assuming alpha is 1/3, what is the ratio of steady-state output per worker in country 1 to steady-state output per worker in country 2?