Problem 02-06 algo Assume that total output is determined by this formula: number of workers x productivity = total output Hint. Assume there are 100 workers and each worker produces $100 of output. Instructions: Round your responses to one decimal place. a. If the workforce is growing by 3 percent a year but productivity doesn't improve, how fast can output increase? Output can increase by %. b. If productivity increases by 2 percent and the number of workers increases by 3 percent a year, how fast will output grow? Output will grow by %.

What would be the likely consequences for local employment if a large multinational corporation were to close its manufacturing plant in a small town? A. Local employment rates would increase due to the emergence of new businesses. B. Local employment rates would likely decrease due to the loss of jobs and associated spending. C. The closure would have no significant impact on local employment rates. D. The closure would increase the diversity of job opportunities in the small town.

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4. How is GDP per capita calculated differently from labor productivity? 5. How do gains in labor productivity lead to gains in GDP per capita? 6. What is an aggregate production function?

Consider an imaginary 10-year period over which output per person falls but GDP increases. How can this happen? This is possible if A. the rate of unemployment is constant B. the rate of increase in the other factors of production is small CC. the number of people in the corresponding population is falling OD the rate of technical progress is constant economy?