Suppose that two countries are exactly alike in every


Suppose that two countries are exactly alike in every respect (meaning they have the same levels of capital, output, depreciation, etc.) except that the citizens of country A have a higher saving rate than the citizens of country B.

A. Which country will have the higher level of output per worker in the steady state? Illustrate graphically.

B. Which country will have the faster rate of growth of output per worker?

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Business Economics: Suppose that two countries are exactly alike in every
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