Scenario: Two Countries (A and B) Have the Same Aggregate

question 180

Multiple Choice

Scenario: Two countries (A and B) have the same aggregate production function, the same level of technology, the same depreciation rate, and the same level of human capital. However, the saving rate is higher in country A than in country B.
-Refer to the scenario above.In the short run,which country must have the higher GDP?

• A) Country A's GDP must be higher than Country B's GDP.
• B) Country B's GDP must be higher than Country A's GDP.
• C) The two countries' GDPs must be equal.
• D) There is no way to determine which country's GDP must be higher from the information given.

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Definitions:

Separate Spheres

A gender division theory suggesting that men and women have different and distinct roles in society, with men dominating the public sphere and women the private or domestic one.

Intrinsic Marriages

Marriages based on internal factors like personal fulfillment and genuine emotional connections, rather than external factors.

Vital

Essential or absolutely necessary for life or to the function of something.

Total Marriages

The cumulative number of legally recognized unions between individuals, typically measured within a specific geographical area and time frame.