Business, 30.03.2020 17:21 andaws21

He amount of education the typical person receives varies substantially among countries. Suppose you were to compare one country, called Gilder, with a highly educated labor force with another country, called Florin, with a less educated labor force. Assume that education only affects the level of the efficiency of labor. Also assume that the countries are otherwise the same: they have the same population growth, the same saving rate, the same depreciation rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. Answer the following questions about Gilder and Florin. a. Which country will have a higher growth of total income?

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He amount of education the typical person receives varies substantially among countries. Suppose you...

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