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1. Suppose real GDP per capita in country A is currently growing at 2 percent per year whereas real GDP per capita in country B

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1. Suppose real GDP per capita in country A is currently growing at 2 percent per year whereas real GDP per capita in country B is currently growing at 6 percent per year. Suppose these countries have the same productivity and an identical workforce. Use what you have learned from the Solow model to provide a potential explanation why real GDP per capita is currently growing more rapidly in country B than in country A. Moreover, explain what might happen to real GDP per capita growth rates in these two countries in the future

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