5. Two countries are identical in every way except that one has a much higher capital-labour ratio...
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5. Two countries are identical in every way except that one has a much higher capital-labour ratio than the other. According to the neoclassical growth model, which country's total output will grow more quickly? Does your answer depend on whether one country or the other is in a steady state? In general terms, how will your answer be affected if the two countries are allowed to trade with each other?
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Macroeconomics Plus Myeconlab With Pearson Global Edition
ISBN: 377221
9th Canadian Edition
Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore
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