Question: Suppose that there are two countries, which are identical in every way except that Country A has more capital than country B (meaning the same
Suppose that there are two countries, which are identical in every way except that Country A has more capital than country B (meaning the same population and same technology). What does the real intertemporal model tell us about how these countries will look different (in terms of real wage, interest rate, employment, per capita output, per capita investment, per capita consumption)? Explain.
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