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Unformatted text preview: Explain. 3. Consider two middle-income countries, both of which are growing at a very fast rate. In one country, Machineland, growth has been accomplished by a high rate of investment and capital accumulation. In the other country, Idealand, growth has been accomplished by a high rate of technological progress. In which country do you think prospects for continued growth are higher? Can Machineland count on continued high growth from new capital? Can Idealand expect continued high rates of technological progress? Explain. 4. Baumol and Blinder, ch. 8 (p. 167 in 2007 Update), Test Yourself, problem 4. 5. Baumol and Blinder, ch. 8, Discussion Questions, problem 7. 6. Baumol and Blinder, ch. 8, Discussion Questions, problem 8....
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- Fall '09