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Countries A and Z are identical, except that A's saving rate is twice that of Z. Both countries follow the simple solow growth model with no changes in technology level. The depreciation rate is 1% and the population growth rate is 1% in both countries. In 2013, capital per worker is $10000 and real GDP per worker is $2000 for both countries.The growth rate of capital per worker in country Z is 0.5% per annum.
1. What is the ratio of income to capital in these two countries?
2. What is the saving rate in country Z?
3. What is the growth rate of capital per worker in country A?
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