Only typed solution Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce cases of argo using only workers and tools. Suppose that,during the course of 15 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor forceremains the same.Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2018 and 2033.Year20182033Year20182033Physical Capital(Tools per worker)1823Physical Capital(Tools per worker)1520HestiatiaLabor Force(Workers)6060VanaheimLabor ForceOutput(Cases of argo)3,6004,320(Workers)6060Output(Cases of argo)1,8003,240Productivity(Cases per worker)Productivity(Cases per worker)Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2018 to 2033, capital per worker rises by 5 units in eachcountry. The 5-unit change in capital per worker causes productivity in Hestiatia to rise by aamount than productivity in Vanaheim. Thisillustrates theeffect.

Labor productivity is the economic performance depicting the output made by each labor. It…

7 Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 15 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 2033. Physical Capital Year (Tools per worker) 2018 2033 Year 2018 2033 18 23 Physical Capital (Tools per worker) 15 20 Hestiatia Labor Force (Workers) 60 60 60 Labor Force (Workers) 60 Output (Cases of argo) 3,600 4,320 Vanaheim Output (Cases of argo) 1,800 3,240 Productivity (Cases per worker) Productivity (Cases per worker) Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2018 to 2033, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hestiatia to rise by a amount than productivity in Vanaheim. This illustrates the effect.