Country a and country b have identical population growth


Country A and country B have identical population growth rates of 1% per annum, and everyone in each country always works 40 hours a week. Labor productivity grows at a rate of 2% in country A and at a rate of 2.5% in country B. What are the growth rates of potential GDP in the two countries?

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Econometrics: Country a and country b have identical population growth
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