a. Suppose that Ya1 > Ya2 and that the two countries are in steady state. Suppose now that Country 1 raises the fraction of the labor force that is doing R&D. Draw a picture showing how the rates of growth in Countries 1 and 2 will behave over time.

b. Now suppose that Country 2 raises the fraction of the labor force that is doing R&D so much that Ya2 >Ya1 . Draw a picture showing how the rates of growth in Countries 1 and 2 will behave over time.

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Represent the graphs as follows In the diagram above the increase in the fraction of labor devoted t... View the full answer