Question: Please answer with explanation Two countries, Richland and Poorland, are described by the Solow growth model. They have the same Cobb- Douglas production function: F

Please answer with explanation

Please answer with explanation Two countries, Richland and Poorland, are described by

Two countries, Richland and Poorland, are described by the Solow growth model. They have the same Cobb- Douglas production function: F (K, L) = K 1/2 1 1/2 but with different quantities of capital and labor. Richland saves 24 percent of its income, while Poorland saves 10 percent. Richland has population growth of 1 percent per year, while Poorland has population growth of 3 percent. Both nations have human capital progress at a rate of 2 percent per year and depreciation at a rate of 5 percent per year. What is the ratio of Richland's steady- state income per worker (Y/L of Richland) to Poorland's steady state income per worker (Y/L of Poorland)? Select one: O a. 2 O b. 3 O c. 4 O d. 16 O e. None of the above

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