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Two countries, A and B, are in steady states. A and B are identical in every way except that A has a lower depreciation rate.

"Two countries, A and B, are in steady states. A and B are identical in every way except that A has a lower depreciation rate. According to the Solow growth model, level of total output in A must be higher and grows faster than total output in B". True/False/Uncertain, explain in words and an appropriate diagram (state your assumptions, if necessary).

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