The graph depicts a hypothetical productivity curve for an economy in 1990. Suppose that in 1990, physical capital per worker is $30,000. Throughout this question, assume the level of human capital is held constant. Calculate the expected increase in output per worker if physical capital per worker increases from $30,000 to $60,000. Real GDP per worker (in thousands) $140 120 100 Productivity using 1990s technology 80 60 60 increase in output per worker: $ Suppose physical capital per worker increased to $60,000 between 1990 and 2000, and output per worker increased by $45,000 over the same time period. What percentage of productivity growth can be attributed to growth in total factor productivity? Round your answer to two places after the decimal productivity growth: 40 20 20 % 0 15 30 45 60 75 90 $105 Physical capital per worker (in thousands)

The graph depicts a hypothetical productivity curve for an economy in 1990. Suppose that in 1990, physical capital per worker is $30,000. Throughout this question, assume the level of human capital is held constant. Calculate the expected increase in output per worker if physical capital per worker increases from $30,000 to $60,000. Real GDP per worker (in thousands) $140 120 100 Productivity using 1990s technology 80 60 60 increase in output per worker: $ Suppose physical capital per worker increased to $60,000 between 1990 and 2000, and output per worker increased by $45,000 over the same time period. What percentage of productivity growth can be attributed to growth in total factor productivity? Round your answer to two places after the decimal productivity growth: 40 20 20 % 0 15 30 45 60 75 90 $105 Physical capital per worker (in thousands)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 34P: Say that the average worker in Canada has a productivity level of 30 per hour while the average...

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