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)
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 7P
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Transcribed Image Text: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)
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