Question: need details explanation 1. Assume we are in the basic Solow model. Two economies are in the transition to their long-run equilibrium. Economy 1's GDP

need details explanation

need details explanation 1. Assume we are in the basic Solow model.

1. Assume we are in the basic Solow model. Two economies are in the transition to their long-run equilibrium. Economy 1's GDP per-capita is growing at 3% while Economy 2's GDP per-capita is growing at 2%. Both economies have: s = 0.2, a = 1/3, 6 = 0.1, and a current level of capital per-capita of k, = 1. Using the lecture notes' formula for the growth rate of y, what is the level of technology of Economy 1 (A,) and Economy 2 (A2)? A. A1 = 1.1 and A2 = 1. B. A1 = 0.8 and A2 = 0.95. C. A, = 0.95 and A2 = 0.8. D. A1 = 0.8 and A2 = 0.9

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