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country a and b have the same production function Y=K^0.5L^0.5 and depreciation rate 0.05 no population growth Country a saves 10% of output each year
country a and b have the same production function Y=K^0.5L^0.5 and depreciation rate 0.05 no population growth Country a saves 10% of output each year and country b saves 20% Suppose both countries start out with a capital stock per worker of 0.1 Q1which country has a higher consumption per worker initially? Q2Which country has a higher capital per worker and output per worker growth rate initially? Q3 Which country has a higher output per worker in the long run? Q4 Which country has a higher output per worker growth rate in the long run
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