Show how capital stock per worker will evolve over time


Suppose that both countries start off with a capital stock per worker of 2. What are the levels of income per worker and consumption per worker at the initial period? Remembering that the change in the capital stock is investment less depreciation, use a calculator to show how the capital stock per worker will evolve over time in both countries. For each year, calculate income per worker and consumption per worker.

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Microeconomics: Show how capital stock per worker will evolve over time
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