Unformatted text preview: : 1. Income per unit capital (Y/K) does not change. 2. Income per capita (Y/N) and Capital per capita (K/N) grow at constant rates. 3. Rental price of capital (r) is constant. 4. Wages (w) grow at a constant rate 5. Rates of growth and levels of income vary substantially across countries (non-convergence)....
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- Spring '11
- Economics, Professor Wallace K C Mok Professor Wallace K C Mok, Mok Professor Wallace, constant rate Rates