Consider two identical economies, A and B, that differ only in their known growth rates of the money supply given by zA and zB. Assume zA > zB . Where is output higher?  Assume there are 150 initial old in an economy. The economy is growing at the rate of 1.5. What is the number of old and young people, and the total population in periods 1 and 2? What is the growth rate of the total population?

Answer rating: 100% (QA)

Economy with Growing Population Scenario Two identical economies A and B with different money supply ... View the full answer