Answered: Suppose that work hours in New Zombie…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 7PA

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Question

17)

Suppose that work hours in New Zombie are 200 in year 1 and productivity is $14 per hour worked.

Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places.

a. What is New Zombie’s real GDP?

b. If work hours increase to 210 in year 2 and productivity rises to $16 per hour, what is New Zombie’s rate of economic growth?

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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