Answered: Aggregate hours a. are the total…

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter6: How Statisticians Measure Inflation

Section6.A: How Statisticians Measure Inflation

Problem 5TY

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Aggregate hours

a. are the total number of hours worked by people holding full time jobs.

b. are the total number of hours worked by all people employed.

c. are the total number of hours worked by all people age 21 and over.

d. have decreased over the last thirty years.

Expert Solution

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Aggregate hours is a statistic which represents the sum of hours worked by all employed people during the course of a year whether they are working full-time or part-time. Measuring the aggregate hours is useful in indicating how much labour input is required to produce the current level of goods and services in the economy. It also gives an idea to policymakers and investors whether the economy is growing or slowing down. These aggregate hours are a part of the total labor calculations as well which help in estimating the real GDP. More hours worked means more productivity in the economy.

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