Question

Hi,I need answer for this qusition below,BR/H

Consider two imaginary countries, indexed A and B. Each economy can be characterised by the model above, but the population is constant in both economies. In the steady state, GDP per worker in country A is 1.44 times that of country B and the ratio of physical investment to output is 0.3 in country A and 0.25 in country B. The rate of depreciation is the same in both countries. What must α be in order for the model to fit these facts?

Answer 1