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Country X and Country Y have the same level of output per worker, rate of depreciation, and measure of productivity. In Country X output per
Country X and Country Y have the same level of output per worker, rate of depreciation, and measure of productivity. In Country X output per worker is growing, whereas in Country Y it is falling. (a) Draw a diagram with the following curves for each country: production function, depreciation, and investment. (b) Identify the following in your diagram: current production and capital per worker for each country, steady state situations for each country. (c) Would these two countries eventually converge to the same output per worker? Please explain, referring to your diagram
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