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The tables (below) show data on investment rates and output per worker for a pair countries. For each pair of countries, assuming that all countries
The tables (below) show data on investment rates and output per worker for a pair countries. For each pair of countries, assuming that all countries have the same technology and depreciation rate; and that the share of labour in output is equal to 2/3: a. calculated the ratio of GDP per worker in steady state predicted by the Solow model h. Then calculate the actual ratio of GDP per worker for each pair of countries c. Are the predictions of the model accurate? Investment rate (96) Output per worker (S) Capeland Bollywood Coastralia Sunnyland 14.6 17491 El Flavador Old Zebraland
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