Consider the two-country model of Section 8.3. Suppose that gA,1 7 gA,2 and that the two countries
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Consider the two-country model of Section 8.3. Suppose that gA,1 7 gA,2 and that the two countries are in steady state. Suppose now that Country 1 raises the fraction of the labor force that is doing R&D. Draw a picture showing how the rates of growth in Countries 1 and 2 will behave over time.
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