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4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that,
4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 30 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2016 and 2046. Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2016 to 2046, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Sporon to rise by a This illustrates the effect
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