In Country 1 the rate of investment is 5%, and in Country 2 it is 20%. The

Question:

In Country 1 the rate of investment is 5%, and in Country 2 it is 20%. The two countries have the same levels of productivity, A, and the same rate of depreciation,

d. Assuming that the value of a is 1/3, what is the ratio of steady-state output per worker in Country 1 to steady-state output per worker in Country 2?

What would the ratio be if the value of a were 2/3?

Fantastic news! We've Found the answer you've been seeking!