Macroeconomics Problem 4 Choose two countries that interest you— one rich and one poor. What is...

Macroeconomics

Problem 4

Choose two countries that interest you— one rich and one poor. What is the income per per-son in each country? Find some data on country characteristics that might help explain the difference in income: investment rates, population growth rates, educational attainment, and so on. (Hint: The Web site of the World Bank, www. worldbank. org, is one place to find such data.) How might you figure out which of these factors is most responsible for the observed income difference? In your judgment, how useful is the Solow model as an analytic tool for understanding the difference between the two countries you chose?

Expert Solution

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Rahul Sunny answered 2 years ago

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