Suppose that two economies share a common steady state so


Suppose that two economies share a common steady state so that there is convergence between them. The poorer country closes 2% of the income gap between them each year. What proportion of the initial gap in income between the two countries is closed after 20 years? After 40 years how much of the initial gap remains?

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Microeconomics: Suppose that two economies share a common steady state so
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