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3. In the Solow model described in Question (2), the equation = (At) /2 x ( $1) 1/2 predicts that differences contribute the most

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3. In the Solow model described in Question (2), the equation " = (At) /2 x ( $1) 1/2 predicts that differences contribute the most to differences in countries' steady-state output per worker. (a) savings (b) productivity (c) none of these 4. Table (1) shows the ratio of savings and steady state per capita GDP (y) of three U.S. states to the nationwide U.S. average, for the year 2018. Use this data and the Solow model with Cobb-Douglas production function described in Question (2) for your calculations. Assume that depreciation rates are the same in each state. yilyus silsus AilAus California 1.19 1.04 Texas 1.03 0.92 Ohio 0.90 1.03 Table 1: Sources: BEA and BLS via FRED II (a) Based on the data shown in the table, which state should have the highest relative per capita RGDP? According to the data, does it? (b) Use the Solow model to solve for relative TFP. Which state has the highest and lowest TFP? Do your answers help explain any issues that may have arisen in the previous

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