Question
Consider two identical economies, A and B , that differ only in their known growth rates of the money supply given by zA and zB.
Consider two identical economies, A and B, that differ only in their known growth rates of the money supply given by zA and zB. Assume zA > zB . Where is output higher? Assume there are 150 initial old in an economy. The economy is growing at the rate of 1.5. What is the number of old and young people, and the total population in periods 1 and 2? What is the growth rate of the total population?
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International Economics
Authors: Thomas Pugel
16th Edition
0078021774, 9780078021770
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