Question: 5. Two countries are identical in every way except that one has a much higher capitallabor ratio than the other. According to the Solow model,

5. Two countries are identical in every way except that one has a much higher capital–labor ratio than the other. According to the Solow model, which country’s total output will grow more quickly? Does your answer depend on whether one country or the other is in a steady state? In general terms, how will your answer be affected if the two countries are allowed to trade with each other?

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