Fig. 3

Gross output. The gross output of the emerging European country increased from 1295 units in 2020 to 1876 units in 2035, whereas the output of the developed European country decreased from 2620 units in 2020 to 2253 units in 2035, so that the total output of the two-country economy increased from 3915 to 4129 units in 2035. The decrease of the gross output of the developed country is more than even out by the gross output of the emerging country. The total gross output increased and created a growing output gap between the two countries. The gap resulting from the output declines in the three sectors depending on their initial size. Figure 4 shows the absolute size of the total and sectoral gaps