Exercise 13.20. Consider the model in Section 13.3. Suppose that there are two economies with identical preferences,
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Exercise 13.20. Consider the model in Section 13.3. Suppose that there are two economies with identical preferences, technology and initial conditions, except country 1 starts with population L1 (0) and country 2 starts with L2 (0) > L1 (0). Show that income per capita is always higher in country 2 than in country 1.
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