8. Labor productivity and GDP The following table shows data for a hypothetical
ID: 1165189 • Letter: 8
Question
8. Labor productivity and GDP
The following table shows data for a hypothetical economy in 2006 and 2007.
Use the table to answer the questions that follow.
The growth rate of the population between 2006 and 2007 is ______ .
Calculate real GDP per person in 2006 and 2007 and enter the values in the previous table.
The growth rate of real GDP per person between 2006 and 2007 is _____
Calculate labor productivity in 2006 and 2007, and enter the values in the previous table. (Note: Enter your answer to the nearest penny.)
Hint: Labor productivity is equal to real GDP divided by the number of hours worked, so the unit of measurement is dollars per hour.
Based on your calculations, the growth rate of labor productivity between 2006 and 2007 is ______ .
Assuming that real GDP per person is a good measure of living standards, between 2006 and 2007, living standards for which of the following reasons?
a. The number of hours worked remained the same.
b. Population growth outpaced productivity growth.
c. Productivity growth outpaced population growth.
8. Labor productivity and GDP
The following table shows data for a hypothetical economy in 2006 and 2007.
Use the table to answer the questions that follow.
2006 2007 Population 800,000 824,000 Number of Hours Worked 2,000,000,000 2,000,000,000 Real GDP $12,000,000,000 $12,112,800,000 Real GDP per Person _____ _____ Labor Productivity ______ _____The growth rate of the population between 2006 and 2007 is ______ .
Calculate real GDP per person in 2006 and 2007 and enter the values in the previous table.
The growth rate of real GDP per person between 2006 and 2007 is _____
Calculate labor productivity in 2006 and 2007, and enter the values in the previous table. (Note: Enter your answer to the nearest penny.)
Hint: Labor productivity is equal to real GDP divided by the number of hours worked, so the unit of measurement is dollars per hour.
Based on your calculations, the growth rate of labor productivity between 2006 and 2007 is ______ .
Assuming that real GDP per person is a good measure of living standards, between 2006 and 2007, living standards for which of the following reasons?
a. The number of hours worked remained the same.
b. Population growth outpaced productivity growth.
c. Productivity growth outpaced population growth.
Explanation / Answer
1) Growth rate of population = (Population in 2007 - Population in 2006)/Population in 2006 x 100
= (824000 - 800000)/800000 x 100 = 24000/800000 x 100 = 3%
2) Real GDP per capita = Real GDP/Population
Real GDP in 2006 = 12,000,000,000/800,000 = 15000
Real GDP in 2007 = 12,112,800,000/824,000 = 14700
Growth rate = (14700 - 15000)/15000 x 100 = - 2%
3) Labor Productivity in 2006 = 12,000,000,000/2,000,000,000 = 6
Labor Producitivity in 2007 = 12,112,800,000/2,000,000,000 = 6.06
Growth rate = (6.06 - 6)/6 x 100 = 1%
4) b. Population growth outpaced productivity growth.
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