Question

Question 4 2 pts Notice this is a multiple answers question. Suppose there are two very similar countries (call them E and F). Both countries have the same population and neither is experiencing population growth (that is, N is identical and constant in both countries). Both countries depreciate capital at the same rate, the both have the same savings rate, they both have the same technology, and there is no technological progress. Suppose that currently both countries are in steady state, when an earthquake destroys half of the capital stock of Country E, but does not kill any of its population. We would expect That Country E's output per worker only for some time. That Country F's output per worker only for some time. That Country F's output (Y) will be higher than Country E's only for some will grow faster than Country F's will grow faster than Country E's time. O That Country F's output (Y) will be higher than Country E's permanently.

Answer 1

That Country F's output per worker (Y/N) will grow faster than Country E's only for some time.

That Country F's output will will be higher than Country E's only for some time.

Explanation:

As N is identical in both countries and earthquake does not kill any of population so N is still same for both countries but half of the capital stock of Country E destroyed by earth quake so it will not able to produce output level of what it did before earth quake.

As Y of E falls wile N still same the number( Y/N) falls,

This difference will be remain for the time upto when capital stock of country E will be back to the pre-earth quake time.