Question #1 :) 0.2 pts Question 1 and H). Notice this is a multiple answers ques
ID: 1122110 • Letter: Q
Question
Question #1 :) 0.2 pts Question 1 and H). Notice this is a multiple answers question. Suppose there are two very similar countries (call them G Both countries have the same population and both are experiencing population growth at the same rate (t N and 9N are identical in both countries). Both countries depreciate capital at the same rate, the both have the same savings rate, they both have the same technology, and technological progress happens at the same rate n both countries. Suppose that currently both countries are in steady state, when an earthquake destroys half of the capital stock of Country G, but does not kill any of its population. We would expect ) wil grow faster than Country H's only for some t ) will grow faster than Country G's only for some time. That Country G's output per effective worker ( AN That Country H's output per effective worker ( That Country H's output (Y) will be higher than Country C's only for some time. That Country H's output () will be higher than Country G's permanently.Explanation / Answer
Answer:
The Country H's output (Y) will be higher than Country G's only for some time as
Since the population growth rate has declined, it will impact the country's ouput. Output growth rate will decline and thus Y will be less than country H.