Countries ABC and XYZ follow the simple Solow growth model, with no changes in the technology level. ● The savings rate is 31% greater in country ABC than in country XYZ. ● The depreciation rate is 5.38% and the population growth rate is 2.28% in both countries. In 20XX, capital per worker is 884 and real GDP per worker is 248 in both countries. The growth rate of capital per worker in country XYZ is 1.69% per annum. Question 1.1: Savings rate What is the savings rate in country XYZ?

Countries ABC and XYZ follow the simple Solow growth model, with no changes in the technology level. ● The savings rate is 31% greater in country ABC than in country XYZ. ● The depreciation rate is 5.38% and the population growth rate is 2.28% in both countries. In 20XX, capital per worker is 884 and real GDP per worker is 248 in both countries. The growth rate of capital per worker in country XYZ is 1.69% per annum. Question 1.1: Savings rate What is the savings rate in country XYZ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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