Please explain the answer of this question throughly! There are 2 countries. A developed country has 2.8%
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Please explain the answer of this question throughly! There are 2 countries. A developed country has 2.8% average annual per capita rate, and a developing country is growing with 1% average per capita rate. Because the developing country has lower capita per capita than the developed country, according to Solow model the developing country must grow quicker than developed country. So from this case does that mean Solow model is false? Please elaborate your reasons in detail.
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