Covering 2 country model for productivity growth
Show the impact of rise in overall labor force for the leader country (other things remaining the same) at time t = t0 on the following well labeled graphs
Cost of imitation graph.
Productivity Growth curve for both countries plotted against the productivity (levels) ratio.
Time path of GDP per capita for both countries.
Time path of productivity for both countries.

Answer rating: 100% (QA)

To show the impact of a rise in the overall labor force for the leader country on various graphs we need to make some assumptions about the model Here we assume a 2country model with one leader countr... View the full answer