In the Solow Growth Model, If Two Countries Are Otherwise

question 66

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, then 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

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Definitions:

United States

A country located in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Hospitals

Institutions providing medical and surgical treatment and nursing care for sick or injured people.

Ninety-nine Percent

A term often used to represent the majority of a population, typically in discussions of economic disparity.

Palliative Care

Specialized medical care focused on providing relief from the symptoms and stress of a serious illness, aiming to improve quality of life for both the patient and the family.