Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 31, Problem 2.8P
To determine
The real
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Productivity often rises during economic expansions and falls during economic recessions. Can you think of reasons why? Briefly explain. (Hint: Remember that the level of productivity involves both levels of output and levels of labor input.)
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?
The table below shows real GDP per capita for the United States between the years 1950-2016.
Real GDP per Capita over Time
Real GDP per Capita
(dollars)
Year
1950
1975
2000
2016
$13,819
24,601
43,935
52,172
Instructions: Round your answers to one decimal place.
a. What is the growth rate in the standard of living from 1950 to 1975?
%
b. What is the growth rate in the standard of living from 1975 to 2000?
%
c. What is the growth rate in the standard of living from 2000 to 2016?
%
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Principles of Economics (12th Edition)
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