Graphically show how it is possible that two steady states exist if the economies have similar rates of depreciation, population growth and technological progress.
1) Graphically show how it is possible that two steady states exist if the economies have similar rates of depreciation, population growth and technological progress. Under which condition might the economy eventually end up in the low k steady state? Explain the intuition. Based on the diagram above, discuss critically whether countries are converging to similar per capita income? Are […]
