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n 2010, the average years of education completed in Uganda was about 6. In the US, it was about 12.4. The US's investment rate into
n 2010, the average years of education completed in Uganda was about 6. In the US, it was about 12.4. The US's investment rate into physical capital was 17% of GDP. Uganda's was 18% of GDP. Uganda's annual population growth rate was about 3% while the US's was about 1%. a) (3) Use the Solow model to calculate the ratio of steady state output per capita in the US relative to Uganda. Assume the countries had the same productivity level , depreciation rate of 5%, and = 1/3
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