Problem
Suppose two countries have the same growth rates of their capital and labor inputs. These factors contribute two percentage points to their respective countries' total output growth rates. Output growth rates are 2.5% for country 1 and 4.5% for country 2.
a) Explain the difference in total output growth between these two countries.
b) Calculate productivity growth for both countries.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.