MACROECONOMICS (LOOSELEAF)-PACKAGE
13th Edition
ISBN: 9781337492317
Author: Baumol
Publisher: CENGAGE L
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Question
Chapter 7, Problem 1TY
To determine
To analyze:The percentage growth in labor productivity.
Expert Solution & Answer
Explanation of Solution
Percentage change in labor productivity can be calculated by dividing the change in productivity by the old output.
For country A, it is
Similarly, it can be calculated for other countries:
| Output per Hour | Percentage Change In productivity | ||
| 2004 | 2014 | ||
| Country A | 40 | 48 | 20 |
| Country B | 25 | 35 | 40 |
| Country C | 2 | 3 | 50 |
| Country D | 0.5 | 0.6 | 20 |
Country D had lowest productivity in year 2004, which was 0.5 units/hr. But the percentage growth of labor productivity is highest in country C, which is 50%. Hence, it is not true that productivity growth was highest where the initial level of productivity was the lowest.
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Students have asked these similar questions
Calculate real growth per capita in the following countries:
Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative
sign (-) in front of the number.
a. Democratic Republic of Congo: population growth=2.6 percent; real output growth = -1.4 percent.
Real growth per capita:%
b. Estonia: population growth=-0.3 percent; real output growth 4.3 percent.
Real growth per capita: %
c. India: population growth = 2.1 percent; real output growth 6.2 percent.
Real growth per capita: %
d. United States: population growth = 0.4 percent; real output growth 2.6 percent.
Real growth per capita:
%
Hypothetical data is given for the following countries. Calculate real growth per capita in the following countries:
Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative
sign (-) in front of the number.
a. Democratic Republic of Congo: population growth = 2.8 percent; real output growth=-1.6 percent.
Real growth per capita: %
b. Estonia: population growth-(0.6) percent; real output growth-4.5 percent.
Real growth per capita:[ %
c. India: population growth=1.7 percent; real output growth = 5.9 percent.
Real growth per capita: [ %
d. United States: population growth 0.7 percent; real output growth = 2.8 percent.
Real growth per capita: [
Homework 5.6
While both India and China have grown tremendously over the last few decades, China appears to have clearly grown more impressively. See the GDP of the two countries in 1990 India GDP of $326 billion, China GDP of $358 billion By 2015, China’s GDP grew to $10.8 trillion India’s GDP grew to $2.07 trillion2 China’s growth > 33%,
whereas India’s is > 6% The World Bank suggests that 800 million people have also moved out of poverty in China. The poverty rate fell from 88% of the population in 1981 to just above 4% of the population in 2014. India, cut its poverty level from 60% to 30% of its population between 1981 and 2012. However, the population also increased, so the overall decline in poverty was from 429 million to 400 million.. The growth of China and its effects on its population is visible. The rise of a middle class has turned China into a marketer's dream as a huge 'market' for all products such as automobiles.
Question: What reasons can be you attribute for…
Chapter 7 Solutions
MACROECONOMICS (LOOSELEAF)-PACKAGE
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