In a given period, both growth of supply of labour and growth of labour productivity increase real GDP. However, one results in a decrease in real wage rate, while the other increases real wage rate. Explain.
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- In a given period, both growth of supply of labour and growth of labour productivity increase real GDP. However, one results in a decrease in real wage rate, while the other increases real wage rate. Explain.
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- Show graphically and explain how a rise in labor productivity affects the real wage rate.Calculate the quantity of labor employed, the real wage rate, and potential GDP.When the real wage decline, it must be the case that a. Nominal wage is declining b. Real wage is not adjusted for inflation c. Nominal wage growth is not keeping pace with inflation d. Unemployment rate is increasing
- Economic While Nominal and Real GDP levels are always different,their growth rates are always the same. is it true or falseSuppose 35 000 000 people are in the labour force, 18 000 000 people are employed in the public sector and 15 000 000 people are employed in the private sector. How many people are unemployed?Economist believe there is a strong correlation between productivity and the standard of living? Discuss. [HINT: In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labour productivity and explain how each of them have an impact on the standard of living.]
- According to the Bangladesh Bureau of Statistics (BBS), the unemployment rate in Bangladesh is 4.20% of which 46% are university graduates. The rate of unemployment among people with tertiary level education has considerably risen. On the other hand, many foreigners mainly from India and Sri Lanka are working in various industrial sectors. This is happening because our local labor force lacks the required technical and managerial skills much-needed in this era of the Industrial Revolution. Thus, for Bangladesh to attain sustainable economic growth through the rise of potential GDP, it is imperative to improve the productivity of the workforce. a) Describe the forces that might help the potential GDP of Bangladesh to grow using the concepts of the Aggregate labor market. Illustrate your answer with an appropriately labeled diagram.b)Such an improvement in productivity and economic growth is followed by higher income and consumption. How do you think this will affect the price level and…Refer to the table below for the following question. Suppose this economy has labor force participation rate of 80%. How many people are in the working population? Category Number of people Employed 48100 Not employed and searching for work 10900 Not employed and not searching for work 6600 Under 16 11000The country of Calico has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms. a. Using 2000 as the base year, what is the growth rate of real GDP from 2000 to 2010? b. Based on the GDP deflator, what is the inflation rate from 2000 to 2010?
- If the labor force participation increases, explain how employment, the real wage rate, and potential GDP change.If there is a sharp increase in the number of workers, holding all other things constant, which of the following is likely in the short term? a) increase real GDP per person but decrease real GDPb) raise real GDP but decrease real GDP per personc) raise both real GDP and real GDP per persond) decrease both real GDP and real GDP per personAssume real GDP in 2019 was $17,230 billion, nominal GDP in 2020 was $18,316 billion, and the GDP‑deflator has increased from 100 in 2019 to 113 in 2020. a. What is the annual growth rate of real GDP? b. Do you think the welfare of all people in the U.S. has increased during that time? Why or why not? c. Calculate the inflation rate in 2020.