Question: (c) (6 marks) Consider two economies A and B, which are otherwise identical except for their investment distortions : economy A has higher distortions than

(c) (6 marks) Consider two economies A and B, which are otherwise identical except for their investment distortions : economy A has higher distortions than economy B (A > B). (i) Will these two economies have the same level of output per worker in the long run? Explain. (ii) Will they have the same growth rates of output per worker and aggregate output in the long run? Explai

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