Question: Consider two countries, labeled 1 and 2. Each has the production functionYi=AiKiLi1 , i =1, 2. Assume that the countries currently have the same GDP

Consider two countries, labeled 1 and 2. Each has the production functionYi=AiKiLi1

, i=1, 2. Assume that the countries currently have the same GDP per person,L1=L2

, common saving, population growth, and depreciation rates, andK1

. Based on this information you know that, in the long run, GDP per capita in country 1 (y1) is _______y2.

greater than

less than

equal to

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