4. The catch-up effect

Consider the economies of Sporon and Gobbledigook, both of which produce glops of gloop using only tools and workers. Suppose that, during the course of 40 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 2018 and 2058.

Sporon Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2018 30 3,000 2058 11 30 3,600 Gobbledigook Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2018 4 30 2,400 2058 8 30 3,600