suppose we define s1 and s2 as the saving rates in countries 1 and 2 respectively, d1=d2 as the depreciation rate in countries 1 and 2 respectively,

suppose we define s1 and s2 as the saving rates in countries 1 and 2 respectively,  d1=d2  as the depreciation rate in countries 1 and 2 respectively, and A1 and A2 as productivity in countries 1 and 2

a) use the solow model to solve for steady state output per worker in each country

b) find the ratio of the steady state output per worker in country 1 to country 2

c) provide economic interpretation of the ratio you found

Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!