4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 50 years, the level of physical capital per worker rises by 5 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 2018 and 2068. Sporon Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) 2018 11 30 1,800 2068 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) 2018 8 30 900 2068 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2018 to 2068, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Sporon to rise by a amount than productivity in Tralfamadore. This illustrates the effect.

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4. The catch-up effect
Consider the economies of Sporon and Tralfamadore, both of which produce gaggles of gop using only tools and workers. Suppose that, during the
course of 50 years, the level of physical capital per worker rises by 5 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 2018 and 2068.
Sporon
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Gaggles of gop)
(Gaggles per worker)
2018
11
30
1,800
2068
16
30
2,160
Tralfamadore
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Gaggles of gop)
(Gaggles per worker)
2018
8
30
900
2068
13
30
1,620
Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2018 to 2068, capital per worker rises by 5 units in each
country. The 5-unit change in capital per worker causes productivity in Sporon to rise by a
amount than productivity in Tralfamadore.
This illustrates the
v effect.
Transcribed Image Text:4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 50 years, the level of physical capital per worker rises by 5 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 2018 and 2068. Sporon Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) 2018 11 30 1,800 2068 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker) 2018 8 30 900 2068 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2018 to 2068, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Sporon to rise by a amount than productivity in Tralfamadore. This illustrates the v effect.
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