Scenario: Consider twocountries, Country A and Country B. Both countries have identical aggregate productionfunctions, populations, and efficiency units oflabor, but they have different technologies. The technology used in Country B is more advanced than that used in Country A.

Which of the following statements will be true in steadystate?

A.

Country A will have greater physical capital stock and GDP than Country B.

B.

Country A will have lower physical capital stock and higher GDP than Country B.

C.

Country A will have lower physical capital stock and GDP than Country B.

D.

Country A will have greater physical capital stock and lower GDP than Country B.