2. Productivity and growth policies Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years. Complete the table by calculating physical capital per worker as well as labour productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labour. Physical Labour Physical Capital per Labour Capital Force Worker Hours Output Labour Productivity (Looms) (Workers) (Looms) (Hours) (Garments) ( Garments per hour of Year labour) 2011 160 40 2,000 20,000 2012 180 60 3,900 29,250 Based on your calculations, in physical capital per worker from 2011 to 2012 is associated with in labour productivity from 2011 to 2012. Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. O Offering free public education to every worker in the country Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts O Subsidizing research and development into new weaving technologies Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving