(Answered) Questioneasturn europe has a 2 compound growth rate and

Management Studies

Question:

Easturn europe has a 2% compound growth rate and Western Europe has 2.5% compound growth rate. Within a 100 year period, a family of 4 in Western Europe is making $11,000 more in income than a family of 4 in Easturn Europe.

What phenomena is causing such large desparities in the long run living standards between the two places in regards to compound growth rate?

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