ECON MACRO (with MindTap Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408738
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 8, Problem 3P
To determine
4 definable periods of labor productivity growth beginning after World War II and lowest productivity growth in these periods.
Introduction: Labor productivity measures the hourly output of a country’s economy. Labor productivity is the rate of output per worker per unit of time. Productivity helps us understand how much each worker produces per hour compared to what each worker is earning to perform the job.
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Chapter 8 Solutions
ECON MACRO (with MindTap Printed Access Card) (New, Engaging Titles from 4LTR Press)
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Similar questions
- Determine which of the following statement about economic growth and labour productivity is true or false. Statement In attempt to reduce unermployment and to discourage layoffs, the government requires firms to continue paying the salary of any worker who loses their job until they find a new one. Therefore, firms will have little incentive to lay off False their workers and help to promote growth in labour productivity. The government should not channel research and development funds to private industry because it will not pay off to the economy as a whole and only benefits the owners of these corporations. [ Select] Nextarrow_forwardWhat are the effects of an increase in labor productivity on potential GDP, the quantity of labor, the real wage rate, and potential GDP per hour of labor?arrow_forwardWith reference to a Cobb-Douglas production function, if a country has a declining labor share that is expected to continue in the future, does that imply that the country will experience faster economic growth (growth in GDP per capita) in the future?arrow_forward
- Suppose you are given data on the rate of growth of GDP, capital, and labour, and the share of these two factors in GDP. How would you calculate the contribution of Total Factor Productivity to growth? Explain it verbally and formally.arrow_forwardWhat is a significant factor in long-run economic growth that Robert Fogel, an economic historian, is best known for suggesting?arrow_forwardWhy is a Cobb-Douglas production function useful for analyzing economic growth?arrow_forward
- Economic growth theories have discussed growth factors from various perspectives. Critically discuss the similarities and differences in growth factors based on Adam Smith's, David Ricardo's, and Harrod-Domar's theories.arrow_forwardSuppose that , z the marginal product of efficiency units of labor, increases in the endogenous growth model. What effects does this have on the rates of growth and the levels of human capital, consumption, and output? Explain your results.arrow_forwardAssume that the growth rate of the capital stock in each period is determined by the level of output in the previous period. 1) An economy of 80 million people has ten percent of them engaged in research and development, where their productivity is 0.0035. The economy is on a balanced growth path, when suddenly 2.88 million people move from goods production into R&D, raising the fraction there to 13.6 percent. In the one period that begins with this labor reallocation, the growth rate of output is ________. [Refer to the instruction above.] A) 2.8% B) 0.0% C) 3.8% D) 2.2%arrow_forward
- Productivity and growth policies Consider a hypothetical small island nation in which the only industry is cloud computing. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year 2039 2040 Physical Capital (Servers) 200 480 Labor Force (Workers) Based on your calculations, productivity from 2039 to 2040. 100 120 Physical Capital per Worker (Servers) Labor Hours (Hours) 4,500 4,200 in physical capital per worker from 2039 to 2040 is asociated with Suppose you're in charge of establishing economic policy for this small island country. Output (TB of data storage) 40,500 75,600 Imposing restrictions on foreign ownership of domestic capital Subsidizing research and development…arrow_forwardList the four major elements that determine productivity growth. Choose one of these factors and explain, using specific examples, the role that it has played in increasing productivity in the united states.arrow_forwardWhat would be the effect of each of the following events on actual and potential economic growth? (Assume no other changes take place.) d) Increased expenditure on education and training. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect (e) The discovery of new, more efficient techniques which could benefit industry generally. Actual growth: rise / fall / no effect Potential growth: rise / fall / no effect (f) A reduction in interest rates. Actual growth: rise / fall / no effect…arrow_forward
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