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Scenario: Consider Two Countries, Country a and Country B

Question 215

Multiple Choice

Scenario: Consider two countries, Country A and Country B. Both countries have identical aggregate production functions, populations, and efficiency units of labor, but they have different technologies. The technology used in Country B is more advanced than that used in Country A.
-Refer to the scenario above.Which of the following statements will be true?


A) Country A's steady-state equilibrium will lie to the right and below that of Country B.
B) Country A's steady-state equilibrium will lie to the right and above that of Country B.
C) Country A's steady-state equilibrium will lie to the left and above that of Country B.
D) Country A's steady-state equilibrium will lie to the left and below that of Country B.

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