In the neoclassical growth model,if two countries are exactly the same but one has a lower permanent budget deficit,we would expect that country to have

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In the neoclassical growth model, a lower permanent budget deficit in one country, compared to another with all else being equal, would lead to higher output and a higher capital-to-labor ratio due to more available savings for investment. However, in the steady state, the growth rates of output would be the same for both countries, as growth rates in the neoclassical model are determined by exogenous factors like technology growth, not by savings or investment rates.

In the Neoclassical Growth Model,if Two Countries Are Exactly the Same