Suppose that two countries, A and B, have the same rates of investment and depreciation, the same

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Suppose that two countries, A and B, have the same rates of investment and depreciation, the same levels of productivity, and the same levels of output per worker. They differ, however, in their rates of population growth. The growth rate of population in Country A is greater than in Country B. According to the Solow model, which country should have a higher growth rate of output per worker? Explain your answer. (Hint: It may be helpful to look back at pp. 66–68)

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Economic Growth

ISBN: 9780273769293

3rd Edition

Authors: David N Weil

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