Solution-What proportion initial gap in income between two

What proportion initial gap in income between two countries

Reference no: EM13887709

Suppose that two economies share a common steady state so that there is convergence between them. The poorer country closes 2% of the income gap between them each year. What proportion of the initial gap in income between the two countries is closed after 20 years? After 40 years how much of the initial gap remains?

Reference no: EM13887709

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What proportion initial gap in income between two countries

Reference no: EM13887709

Reference no: EM13887709

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