in both countries. In other words, there is no increase in the efciency of the economy in turning its inputs, labor and capital, into output. i. iv. In a scenario with no TFP growth, what theoretically would have happened to the level and growth rate of output per capita in the long run in the United States (i.e., does the level and the growth rate approach some xed number eventually)? Does your previous answer also apply to the level of output (instead of output per capita)? Would France have eventually caught up, or even overtaken, the United States in terms of output per capita? Now take into account that TFP growth was in fact positive in both countries during this period and approximately equal to 2%. How does your answer to question (i) change under this scenario? How does the long rim growth rate of production per capita in both countries depend on the rate of TFP growth? What does your answer in (iv) tell you about the inlportance of productivity growth for long run inrprovements in standards of living? Why can't we count on continuously increasing our capital- labor ratio to grow in the long run