Question: Macroeconomics: Suppose all long run economic outcomes of countries can be interpreted through the Solow-Swan model lens. For the sake of argument and clear comparison, suppose we condition all countries to share the same model parameters bar one single parameter/factor. Within this paradigm, differences in political institutions might account for observed cross-country inequality in reality, where the persistent inequality can be measured in terms of the gap in living standard between some groups of countries (e.g. in parts of Africa) and others (e.g. the OECD member countries).

TRUE or FALSE? Justify your conclusion with a persuasive argument, reasoning or story-telling if you think the mechanism is outside of the Solow-Swan model.