Question
Consider two countries, labeled 1 and 2. Each has the production functionYi=AiKiLi1 , i =1, 2. Assume that the countries currently have the same GDP
Consider two countries, labeled 1 and 2. Each has the production functionYi=AiKiLi1
, i=1, 2. Assume that the countries currently have the same GDP per person,L1=L2
, common saving, population growth, and depreciation rates, andK1 . Based on this information you know that, in the long run, GDP per capita in country 1 (y1) is _______y2. greater than less than equal to
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Macroeconomics
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
1st Edition
978-0132109994, 0132109999
