(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
For this part, you're going to explore the different policies options that will allow Albernia to double their real GDP per worker.
(Description)
Assuming that the amount of human capital per worker and the technology are held fixed in each country, can you recommend a policy to generate a doubling of real GDP per capita in Albernia from 20000 dollars to 40000 dollars? On the Figure there is a productivity curve. Horizontal axis corresponds to the physical capital per worker (in dollars). Vertical axis corresponds to real GDP per worker (in dollars). This is a monotonically increasing curve with decreasing steepness of the gradient and it passes through origin and points A with coordinates (10000,20000) and B with coordinates (30000,40000). The curve is labeled "Productivity 1".
(Speaker)
The problem states, the technology and human capital are fixed, which leaves Albernia only one possibility to increase output. If Albernia invests in more physical capital, then output will increase. In order to increase output from 20000 dollars per worker to 40000 dollars per worker, they must increase capital per worker from 10000 to 30000 units.
(Description)
On the Figure there is a productivity curve. This is a monotonically increasing curve with decreasing steepness of the gradient and it passes through origin and points A with coordinates (10000,20000) and B with coordinates (30000,40000). Arrow from 20000 to 40000 along the Real GDP per worker axis is plotted. Another arrow from 10000 to 30000 along the Physical capital per worker axis is plotted.