In the Solow Growth Model, If Two Countries Are Otherwise

question 43

Multiple Choice

In the Solow growth model, if two countries are otherwise identical (with the same production function, same saving rate, same depreciation rate, and same rate of population growth) except that Country Large has a population of 1 billion workers and Country Small has a population of 10 million workers, the steady-state level of output per worker will be _____, and the steady-state growth rate of output per worker will be _____.

• A)the same in both countries; the same in both countries
• B)higher in Country Large; higher in Country Large
• C)higher in Country Small; higher in Country Small
• D)higher in Country Large; higher in Country Small

---

Definitions:

Delimited Text File

A text file where each field is separated by a specific character, commonly used for data exchange.

CSV File

A Comma-Separated Values file, which stores tabular data (numbers and text) in plain text form, making it simple to import and export between programs.

XML File

A text file format that uses tags to define objects and object attributes; extensively used in data serialization and web services.

Extensible Markup Language

A flexible way to create common information formats and share both the format and the data on the World Wide Web, intranets, and elsewhere.