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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Chapter 6, Problem 2TY
To determine
Change in labor productivity.
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If output rises by 35 percent while hours of work increase by 40 percent, has productivity increased or decreased? By how much?
Why does GDP depend on productivity in the long run?
What correlation lies between productivity and the standard of living?
Chapter 6 Solutions
Macroeconomics: Principles and Policy (MindTap Course List)
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Similar questions
- When GDP increase ?arrow_forwardAssume there are 100 workers and each worker produces 100 outputs. If the workforce is growing by 1% a year but productivity does not improve, how fast can output increase?arrow_forwardBarcode technology spurred a lot of investment in retailing.How did it alter the retailing production function?What would a similar amount of investment have accomplised without the new technology?arrow_forward
- In 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_forwardIf a nation’s productivity grows by 3 percent rather than 1.5 percent over many years, what will be the difference in the nation’s standard of living? Explain.arrow_forwardwhy do economist believe there is a strong correlation between productivity and the standard of living?arrow_forward
- Toyota contemplating whether to increase production of SUVs based on future consumer demand. Is that micro or macro?arrow_forwardSuppose that Indonesia's national production function is Y = K 05L 05, where K is the amount of land and Lis the amount of labor. The economy starts when the amount of land owned is 100 units and the number of workers is 100 units. Calculate the following indicators. a. How much output is produced? b. What are the labor wages and land rent? c. What is the share of the output received by labor? d. If a natural disaster occurs that causes the population to be reduced by half, what is the new level of national output? e. What are the new rates of labor wages and land rent? f. What share of output does the labor receive now?arrow_forwardAn increase in labor productivity means businesses will produce more output with the same amount of labor. Explainarrow_forward
- Describe the various components of fluctuations in economic activity over time. Because economic activity fluctuates, how is long-term growth possible?arrow_forwardGo to a recent issue of The Economist magazine. In the back of each issue is a section called “economic indicators.” That section lists the most recent growth data for a substantial number of countries. Which countries around the world are growing most rapidly according to the most recent data? Which countries around the world are growing more slowly? Flip through the stories in The Economist to see if there is any explanation for the pattern that you observe. Write a brief essay on current general economic conditions around the world.arrow_forwardFor each of the following products state if it is a final or intermediate good and explain why? A brick, a cell phone, and a barrel of crude oil.arrow_forward
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