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Unformatted text preview: In which economy, A or B, are haircuts likely to be more expensive? 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....
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This note was uploaded on 05/30/2010 for the course ECON 205 taught by Professor Kamrany during the Spring '07 term at USC.
- Spring '07