Suppose there are two countries. In the rich country, the representative consumer has Hr units of human
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(a) How do the levels of per capita income, the growth rates of per capita income, and real wages compare between the rich and poor countries?
(b) If consumers could choose their country of residence, where would they want to live?
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a At any moment in time income per capital in the two countries is z r uH r and z p ...View the full answer
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