How the size of the labor force remains the same

Reference no: EM13189693

consider the economies of Hermes and Gobbiedgook, both of which product gaggles of gop using only tools and workers. suppose that, over the course of 50years, the level of physical capital per worker rises by one tool per worker in each economy, but the size of the labor force remains the same.

Hermes:

year physical capital per worker labor foce output

2015: 2 40 4000

2065 3 40 5200

Gobbledigook:

year physical capital per worker laber force output

2015 1 40 2000

Calculate prodictivity, in terms of output per worker, for economies in 2015 and 2065 and fill in the following tble.

prodictivity (gaggies per worker)

Hormes 2015 2065

Gobbledigook ? ?

initally, the number of tools per worker was higher in Hermes than in Gobbiedigook. From 2015 to 2065, capital per worker rises by one unit in each country. the one- unit change in capital per worker causes prodactivity in Hermes to rise by a amont than prodactivity in Gobbledigook. this illistrates the concept of what

Reference no: EM13189693

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