b. Which country will have the higher level of income per worker? The level of income per worker will be equal. Gilder Florin c. Which country will have a higher real rental price of capital? l ' l Florin They will have the same real rental price of capital. Gilder The amount of education the typical person receives varies substantially among countries. Suppose you were to compare one country, called Gilder, with a highly educated labor force with another country, called Florin, with a less educated labor force. Assume that education only affects the level of the efciency of labor. Also assume that the countries are otherwise the same: they have the same population growth, the same saving rate, the same depreciation rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. Answer the following questions about Gilder and Florin. a. Which country will have a higher growth of total income? :1. Which country will have a higher growth of total income? Florin Gilder The growth of total income will be equal. 9 El Xnip - d. How will the real wage diifer in Gilder and Florin? O The wage per effective worker will be higher in Gilder, but ination will be higher in Gilder, so the difference is offset. 0 The wage per effective worker and the wage per unit of labor will be the same in each country. 0 The wage per effective worker will be the same in both countries, but the wage per unit of labor will be higher in Gilder. O The wage per effective worker will be the same in both countries, but the wage per unit of labor will be higher in Florin