Say that the average worker in Canada has a productivity level of $30 per hour while the average worker in the United Kingdom has a productivity level 34. of $25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1% per year while worker productivity in the UK grows 3% per year. After five years, who will have the higher productivity level, and by how much?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 34P: Say that the average worker in Canada has a productivity level of 30 per hour while the average...
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Say that the average worker in Canada has a
productivity level of $30 per hour while the average
worker in the United Kingdom has a productivity level
34.
of $25 per hour (both measured in U.S. dollars). Over
the next five years, say that worker productivity in
Canada grows at 1% per year while worker productivity
in the UK grows 3% per year. After five years, who will
have the higher productivity level, and by how much?
Transcribed Image Text:Say that the average worker in Canada has a productivity level of $30 per hour while the average worker in the United Kingdom has a productivity level 34. of $25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1% per year while worker productivity in the UK grows 3% per year. After five years, who will have the higher productivity level, and by how much?
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