Answered: Aggregate hours a. are the total…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Aggregate hours

a. are the total number of hours worked by people holding full time jobs.

b. are the total number of hours worked by all people employed.

c. are the total number of hours worked by all people age 21 and over.

d. have decreased over the last thirty years.

Expert Solution

Step 1

Aggregate hours is a statistic which represents the sum of hours worked by all employed people during the course of a year whether they are working full-time or part-time. Measuring the aggregate hours is useful in indicating how much labour input is required to produce the current level of goods and services in the economy. It also gives an idea to policymakers and investors whether the economy is growing or slowing down. These aggregate hours are a part of the total labor calculations as well which help in estimating the real GDP. More hours worked means more productivity in the economy.

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions