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Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce crates of copia using only workers and tools. Suppose that, during the course
Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce crates of copia using only workers and tools. Suppose that, during the course of 50 years, the level of physical capital per worker rises by 5 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 2068. Year Hestiatia Physical Capital Labor Force Output Productivity (Tools per worker) (Workers) (Crates of copia) (Crates per worker) 2018 20 60 3,600 2068 25 60 4,320
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