4. The catch-up effect Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2015 and 2035. Hermes Productivity Physical Capital Labor Force Output (Gaggles of gop) (Tools per worker) (Workers) (Gaggles per worker) Year 2015 11 30 3,000 2035 15 30 3,600 Gribinez Productivity Physical Capital Labor Force Output (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) Year 2015 8 30 2,400 2035 12 30 3,600 Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2015 to 2035, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a amount than productivity in Gribinez. This illustrates the effect.
4. The catch-up effect Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2015 and 2035. Hermes Productivity Physical Capital Labor Force Output (Gaggles of gop) (Tools per worker) (Workers) (Gaggles per worker) Year 2015 11 30 3,000 2035 15 30 3,600 Gribinez Productivity Physical Capital Labor Force Output (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) Year 2015 8 30 2,400 2035 12 30 3,600 Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2015 to 2035, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a amount than productivity in Gribinez. This illustrates the effect.
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Transcribed Image Text:4. The catch-up effect
Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course
of 20 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labor force remains the same.
Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2015 and 2035.
Hermes
Productivity
Physical Capital
Labor Force
Output
(Gaggles of gop)
(Tools per worker)
(Workers)
(Gaggles per worker)
Year
2015
11
30
3,000
2035
15
30
3,600
Gribinez
Productivity
Physical Capital
Labor Force
Output
(Tools per worker)
(Workers)
(Gaggles of gop)
(Gaggles per worker)
Year
2015
8
30
2,400
2035
12
30
3,600
Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2015 to 2035, capital per worker rises by 4 units in each
country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a
amount than productivity in Gribinez. This
illustrates the
effect.
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