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4. The catch-up effect Consider the economies of Blahnik and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that,
4. The catch-up effect Consider the economies of Blahnik and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 50 years, the level of physical capital per worker rises by4 tools per worker in each economy, but the size of each labour force remains the same. Complete the followlng tables by entering productivlty {ln terms of output per worker) for each economy ln 201 8 and 2068. Blahnik Physical Capital Labour Force Output Productivity Year ( Tools per Iworker) ( Workers) (Gogol es of goo) (Goggles per Iwork er) 20 18 1 1 30 3,000 | | 2068 15 30 3,600 | | Gribinez Physical Capital Labour Force Output Productivity Year ( Tools per worker) ( Workers) (Gaggl es of stop) (Goggles per work er) 20 18 s 30 2,400 | | 2068 12 30 3,600 | | Initially, the number of tools per worker was higher in Blahnik than in Gribinez. From 2018 to 2068, capital per worker rises by 4 units in each country. The 4unit change in capital per worker causes productivity in Blahnik to rise by a V amount than productivity in Gribinez. This illustrates the concept of V , which makes it V For countries with low output to catch up to those with higher output
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