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1) Figure 1 shows a simple model of economic growth, which can be used to describe the differences between many economies. Let us consider Australia
1) Figure 1 shows a simple model of economic growth, which can be used to describe the differences between many economies. Let us consider Australia and New Zealand, two economies which we will assume for this question have the same level of technology but different levels of capital per worker..
Figure 1: Growth Model Diagram FAUIS ( T )= FNZ (T) Output per worker Capital per workerStep by Step Solution
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