Question

If growth in the labor force is 1 percent, growth in labor productivity is 2 percent, and growth in prices is 2 percent, growth in potential (real) output will be

a. 3 percent |
||

b. 5 percent |
||

c. 1 percent |
||

d. Cannot tell from the information provided |

Answer #1

Growth in Real Output is = Growth In Labour Force + Growth In Labour Productivity

= 1% + 2%

= 3%

So the correct option is "A"

This growth equation says that growth in output is the factor of the growth in the labor force in the market and also the growth in labor productivity. We all know that labor productivity will improve when there will be technological advancement. So this equation considers all the factors.

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1.
labor productivity
a. growth depends on growth in the stock of capital
b. determines the real standard of living
c. equals the average product of labor
d. all of the above

Year
Quantity of Labor
Productivity of Labor
1
2,000
$200
2
2,000
210
3
2,000
210
The table shows the quantity of labor (measured in hours) and
the productivity of labor (measured in real GDP per hour) in a
hypothetical economy in three different years. Between Year 2 and
Year 3, real GDP increased by
5 percent.
2 percent.
10 percent.
15 percent.

1-
Excluding discouraged workers from the labor force causes
a.
the unemployment rate to decrease.
b.
labor productivity to increase.
c.
the unemployment rate to increase.
d.
the unemployment rate to remain the same.
e.
labor productivity to decrease.
2-
Real GDP
a.
will always change when prices change.
b.
measures GDP minus depreciation of capital.
c.
is GDP adjusted for changes in the price level.
d.
is also called nominal GDP.

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“Nonfarm business sector labor productivity growth was revised to
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percent and hours worked increased 3.3 percent. (All quarterly
percent changes in this release are seasonally adjusted annual
rates.) From the fourth quarter of 2016 to the fourth quarter of
2017, productivity increased 1.1 percent, reflecting a 3.2-percent
increase in output and a 2.1-percent increase in hours worked.” Is...

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Which event from below is not expected to improve labor
productivity?
A.The acquisition of more education and training by the labor
force.
B.Technological advance.
C.The realization of economies of scale.
D.An increase in the size of the labor force.
Q2.
Say, you know that the labor productivity is increasing by 2
percent every year due to technology improvements. Knowing this and
keeping everything else equal, estimate the number of years for the
standards of living to double
A.35 years....

Consider an economy operating at full employment. Suppose the
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decrease in aggregate demand (AD).
1) The decrease in aggregate demand will result in
2) an expansion and a decrease in the price level.
3) an expansion and an increase in the price level.
4) a recession and an increase in the price level.
a recession and a decrease in the price level.
Deviations from full employment that are the...

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1. The following table shows data for
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Use the table to answer the questions that
follow.
(Hint: When calculating growth rate for
population use the following formula: Population Growth
Rate=Population in 2007−Population in 2006Population in
2006×100Population Growth Rate=Population in 2007−Population in
2006Population in 2006×100. You will need to use similarly
structured formulas for calculating growth rate of real GDP per
person and the growth rate of labor productivity).
2006...

Suppose the growth rate of the money supply is 3 percent, the
growth rate of velocity is 4 percent, and the growth rate of real
aggregate output is 2 percent. According to the equation of
exchange, the inflation rate would be _____ percent
Select one:
a. 7
b. 6
c. 5
d. 4
e. 3

Suppose that nominal wage growth is 5 percent per year and the
inflation rate( the growth of aggregate prices) is 2% per year, the
growth of the real wage rate is
A 10 percent per year
B -3 percent per year
C 3 percent per year
D 7 percent per year

The table below shows unemployment and labor force statistics
for an economy.
Actual rate of unemployment
3%
Natural rate of unemployment
4%
Population of the country
125 million
Number of people employed
97 million
Number of people unemployed
3 million
Number of people employed part time
5 million
Number of people discouraged workers
2 million
Calculate the size of the labor force.
Calculate the labor force participation rate. Show your
work.
Given the state of the economy described in the...

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