## Math Problem Statement

Country X and Country Y have the same level of output per worker. They also have the same values for the rate of depreciation, 3, and the measure of productivity, A. In Country X output per worker is growing, whereas in Country Y it is falling. What can you say about the two countries rates of investment? Can you show a simple Solow model graph to prove it?

## Solution

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## Math Problem Analysis

### Mathematical Concepts

Macroeconomics

Solow Growth Model

Capital Accumulation

Depreciation

### Formulas

Output per worker: y = f(k)

Investment function: I = s * f(k)

Depreciation: δ * k

### Theorems

Solow Growth Model

Diminishing Returns to Capital

### Suitable Grade Level

College level (Intermediate Macroeconomics)

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