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The following table shows real GDP per hour of work in four imaginary countries in the years 2008 and 2018. Calculate productivity growth for each

The following table shows real GDP per hour of work in four imaginary countries in the years 2008 and 2018. Calculate productivity growth for each country.

Is it true that productivity growth was highest where the initiallevel of productivity was the lowest? For which countries?

Output per Hour

2008

2018

% Growth Productivity

Country A

$40

$46

Country B

2

3

Country C

0.50

0.60

Which country supports convergence theory? Why?

Which country is counter to convergence theory? Why?

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