Question

Suppose that two countries are exactly alike in every respect except that population grows at a...

Suppose that two countries are exactly alike in every respect except that population grows at a faster rate in country A than in country B. Which country will have the higher level of output per worker in the steady state? Illustrate graphically.

(a) In which country is the level of steady-state output per worker larger? Explain.

(b) In which country is the steady-state growth rate of output per worker larger?

(c) In which country is the growth rate of steady-state total output greater?

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