Find out the two possible fiscal policy solutions for the problem.
The Solow model and relative country Performance: Consider the real world data for South Korea and South Africa for the year 2000. Capital/Worker (K/N) and GDP/Worker (Y?N) are expressed in 2000 dollars
Assuming that the depreciation rate, d = .05 and the share in the Cobb-Douglass production function, Θ=.35 is the same for countries. what will happen to their relative output per worker in the long run? Will South Africa catch up?