4. The catch-up effectConsider the hypothetical economies of Hestiatia and Vanaheim, both of which produce crates of copia using only workers and tools. Suppose that, duringthe course of 35 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 thesame.Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2024 and 2059.Year20242059Year20242059Physical Capital(Tools per worker)1923Physical Capital(Tools per worker)1620Labor Force(Workers)6060Labor Force(Workers)6060HestiatiaOutput(Crates of copia)6,0007,200VanaheimOutput(Crates of copia)4,8007,200Productivity(Crates per worker)Productivity(Crates per worker)Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2024 to 2059, capital per worker rises by 4 units in eachcountry. The 4-unit change in capital per worker causes productivity in Hestiatia to rise by aamount than productivity in Vanaheim. Thisillustrates theeffect.

4. The catch-up effect Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce crates of copia using only workers and tools. Suppose that, during the course of 35 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 2024 and 2059. Physical Capital Year (Tools per worker) 2024 2059 Year 2024 2059 19 23 Physical Capital (Tools per worker) 16 20 Labor Force (Workers) 60 60 Hestiatia Labor Force (Workers) 60 60 Output (Crates of copia) 6,000 7,200 Vanaheim Output (Crates of copia) 4,800 7,200 Productivity (Crates per worker) Productivity (Crates per worker) Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2024 to 2059, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hestiatia to rise by a amount than productivity in Vanaheim. This illustrates the effect.

4. The catch-up effect Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce crates of copia using only workers and tools. Suppose that, during the course of 35 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 2024 and 2059. Physical Capital Year (Tools per worker) 2024 2059 Year 2024 2059 19 23 Physical Capital (Tools per worker) 16 20 Labor Force (Workers) 60 60 Hestiatia Labor Force (Workers) 60 60 Output (Crates of copia) 6,000 7,200 Vanaheim Output (Crates of copia) 4,800 7,200 Productivity (Crates per worker) Productivity (Crates per worker) Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2024 to 2059, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hestiatia to rise by a amount than productivity in Vanaheim. This illustrates the effect.

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Question

4. The catch-up effect
Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce crates of copia using only workers and tools. Suppose that, during
the course of 35 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 2024 and 2059.
Year
2024
2059
Year
2024
2059
Physical Capital
(Tools per worker)
19
23
Physical Capital
(Tools per worker)
16
20
Labor Force
(Workers)
60
60
Labor Force
(Workers)
60
60
Hestiatia
Output
(Crates of copia)
6,000
7,200
Vanaheim
Output
(Crates of copia)
4,800
7,200
Productivity
(Crates per worker)
Productivity
(Crates per worker)
Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2024 to 2059, capital per worker rises by 4 units in each
country. The 4-unit change in capital per worker causes productivity in Hestiatia to rise by a
amount than productivity in Vanaheim. This
illustrates the
effect.

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