2. Suppose GDP per capita is given by y = Aka , where A is productivity, k is capital per person, and a = 1/3 is a parameter. The following table reports values for observed capital per capita (pc), k, and observed GDP per capita, y, for California (CA), Texas (TX), and Ohio (OH), where all values are reported relative to the U.S. (that is, k and y in the U.S. have been normalized to a value of 1.000). Fill out the table. That is, compute the value for predicted GDP per capita, yp, in California, Texas, and Ohio if productivity, A, is equal to 1, and compute the model-implied productivity (also known as TFP) value in California, Texas, and Ohio (that is, the value of A required for the model to match the data). (Show every step of all calculations). What might help explain why implied TFP is not equal to 1? Relative to the U.S. (i.e., U.S. = 1.000) Country Observed Observed Predicted Capital pc, (k) GDP pc, (y) GDP pc, yP, if A = 1 Implied TFP (A) CA 1.172 1.172 ? TX 1.014 1.014 ? OH 0.906 0.906