var imagesXXlarge = ",,,,"; var imagesXlarge = "krugmanapecon2e_mod38_fig-01,krugmanap2e-ch38-fig-10,,,,,,"; var imagesLarge = "krugmanapecon2e_mod38_fig-02,,,,"; var imagesSmall = "krugmanap2e-ch38-fig-6,,,,"; var imagesMedium = "krugmanap2e-ch38-fig-5,,,,"; xBookUtils.showAnswers['krugmanapecon2e_mod38_cyu_1a'] = "Significant technological progress will allow an increase in productivity (real GDP per worker) at any given level of physical capital per worker. The result is an upward shift of the productivity curve."; xBookUtils.showAnswers['krugmanapecon2e_mod38_cyu_1b'] = "An increase in the amount of physical capital per worker causes a movement upward and to the right along the productivity curve. Due to diminishing marginal returns, each successive increase in physical capital per worker results in a smaller increase in productivity than the one before it."; xBookUtils.showAnswers['krugmanapecon2e_mod38_cyu_2a'] = "The amount of physical capital has increased by 4% per year and the size of the labor force hasn’t changed, so the amount of physical capital per worker has increased by 4% per year. Given that each 1% increase in physical capital per worker raises productivity by 0.3%, the productivity growth attributable to growth in physical capital per worker is 4% × 0.3 = 1.2% per year. Output has increased by 5% per year and the number of workers hasn’t changed, so productivity (output per worker) has increased by 5% per year. The growth in physical capital per worker contributed 1.2%/5% × 100% = 24% of this productivity growth."; xBookUtils.showAnswers['krugmanapecon2e_mod38_cyu_2b'] = "If the labor force had grown by 4% per year, the 4% increase in physical capital per year would have been just enough to keep the physical capital per worker unchanged. Thus, none of the increase in productivity would have been attributable to growth in physical capital per worker."; xBookUtils.showAnswers['krugmanapecon2e_mod38_cyu_3a'] = "It will take time for workers to learn how to use the new computer system and to adjust their routines. And because there are often setbacks in learning a new system, such as accidentally erasing your computer files, productivity at Multinomics may decrease for a period of time."; xBookUtils.showAnswers['krugmanapecon2e_mod38_fr_2_rubric'] = "
Rubric for FRQ 2 (5 points)
1 point: Graph with “Real GDP per worker” on the vertical axis and “Physical capital per worker” on the horizontal axis
1 point: Straight, upward-sloping productivity curve shown on graph
1 point: Graph with curve that increases at an increasing rate
1 point: Movement would occur to the left along the same productivity curve to indicate a decrease in the amount of physical capital per worker.
1 point: It shifted the productivity curve upward, because the real GDP per capita increased for any given amount of capital.
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