Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280601
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Question
Chapter 6, Problem 2TY
To determine
Change in labor productivity.
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Students have asked these similar questions
If output rises by 35 percent while hours of work increase by 40 percent, has productivity increased or decreased? By how much?
For a high-income economy like the United States, what element of the aggregate production function are most important in bringing about growth in per capita GDP? What about the middle-income country such as Brazil? A low-income country such as Niger?
Why does GDP depend on productivity in the long run?
Chapter 6 Solutions
Macroeconomics: Principles and Policy (MindTap Course List)
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- During the course of the twentieth century, the average workweek in the United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labor productivity?arrow_forwardSuppose an economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes? (a) The investment rate doubles (b) the depreciation rate falls by 10% (c) The productivity level rises by 10% (d) an earthquake destroys 75% of the capital stock (e) A more generous immigration policy leads the population to double.arrow_forwardIn the very long run, what are the major factors that are responsible for growth in potential output or GDP? Use the production function to support your answer.arrow_forward
- Refer to the graph shown below. At point A: Which is true? A: the economy has full employment B: economic growth is declining C: inflation tends to be declining D: wages can be lowered due to worker surplusarrow_forwardIf a nation's real GDP is growing by 6 percent per year, its real GDP will double in approximately ________. Answer to 2 decimal places.arrow_forwardTrue or false? Consider two economies that spend different shares of their gross domestic product to R&D activities. Is it true that the economy with a larger share of R&D spending grows faster in the long-run?arrow_forward
- Suppose that, in an imaginary country, the last decade witnessed a flow of employment from coal mining to automotive industry. Explain why would this change most possibly create positive affects on real GDP per capita?arrow_forwardFor a high-income economy like Australia, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middleincome country such as India? A low-income country such as Afghanistan?arrow_forwardDescribe the various components of fluctuations in economic activity over time. Because economic activity fluctuates, how is long-term growth possible?arrow_forward
- what explains the long-term differences in growth and thus present-day differences in levels of real income?arrow_forwardAre nations with large underground economies likely to be happier or unhappier than one would expect, given their measured levels of real per capita GDP? Explain.arrow_forwardHolding all factors of production constant except for labor, what happens in an economy when real GDP output increases? The unemployment rate falls and in employment rate increases. The level of technology increases as the economy expands. The level of capital increases as the economy expands. All of the answers are correct.arrow_forward
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