a) Australia has a higher level of capital per worker than New Zealand. Label (using dots) the points where Australia and New Zealand may be on a simple model of economic growth, indicating the corresponding level of output per worker and capital per worker. b) Why does the economic growth rate decline as an economy moves along and to the right of the production function curve? Explain in terms of the slope of the curve and degree of capital intensity. c) Which country has the higher growth rate, Australia or New Zealand? Why does this mean the two countries should converge in terms of output per worker? d) In reality, we often see that countries with the same level of technology on different points of the production function do not converge. Give and explain two reasons why convergence may not occur in this model. 2) Figure 1 shows a simple model of economic growth, which can be used to describe the differences between many economies. Let us consider Australia and New Zealand, two economies which we will assume for this question have the same level of technology but different levels of capital per worker.. [Ref: Notes 10-2] Figure 1: Growth Model Diagram FAUS ( T)= F NZ (T) Output per worker Capital per worker