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If we define and
As the saving rates,
As the depreciation rates, and
And
As productivity in Countries 1 and 2, respectively, and the production function per capita is given by
In both countries, the Solow model predicts that the ratio of GDP per worker in Country 1 relative to Country 2 is:
Granite Unit
A large body of igneous rock with a granular and phaneritic texture, predominantly composed of quartz and feldspar.
Half-Lives
The time required for half the atoms in a sample of a radioactive substance to decay into a more stable form.
Granite Unit
A large body of intrusive igneous rock characterized by a composition of quartz, feldspar, and mica, commonly forming part of the continental crust.
Half-Lives
The time required for half the atoms in a radioactive substance to decay, a measure of the rate at which radioactive materials break down.
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