Suppose that two countries are exactly alike in every respect except that the citizens of country A have a higher saving rate than the citizens of country B. a. Which country will have the higher level of output per worker in the steady state? Illustrate graphically. b. Which country will have the faster rate of growth of output per worker in the steady state?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter20: Economic Growth In The Global Economy
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Suppose that two countries are exactly alike in every respect except that the citizens of country
A have a higher saving rate than the citizens of country B.
a. Which country will have the higher level of output per worker in the steady state? Illustrate
graphically.
b. Which country will have the faster rate of growth of output per worker in the steady state?

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