Check all that apply: Suppose there are two very similar countries (call them G
ID: 1217688 • Letter: C
Question
Check all that apply:
Suppose there are two very similar countries (call them G and H). Both countries have the same population and both are experiencing population growth at the same rate (that is, N and gN 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 in 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 will grow faster than Country H's only for some time. That Country G's output per effective worker AN That Country H's output per effective worker will grow faster than Country G's only for some time. AN That Country H's output (Y) will be higher than Country G's only for some time That country H's output (Y) will be higher than Country G's permanentlyExplanation / Answer
Country Hs output per effective labor will grow faster then country G for some time.because both countries are at steady state where capital stock adjustment takes places after few pdriod of time .