Chapter 20, Problem 34P

### Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

Chapter
Section

### Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

# Say that the average worker in Canada has a productivity level of per hour while the average worker in the United Kingdom has a productivity level of per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at per year while worker productivity in the UK grows per year. After five years, whiz) will have the higher productivity level, and by how much?

To determine

The country that will have a higher productivity level after 5 years and also the amount by which the productivity has increased is to be determined.

Explanation

Formula to be used is:

Starting Amount (1 + =Growth rate) Number of years = Ending amount

In the 5 years the productivity is as follows:

=$30×(1.01)5=$31.53$30×(1.01)5=$31

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started