Question

during periods in which average labor productivity is click to select , average living standards will be click to select , because

○ growth leads to an increase in the supply of goods and services available
○ growth can lead to population growth and more jobs
○ declines can result in more jobs available
○ declines can result in a higher demand for available goods and services

suppose there are two countries alpha and beta with the following values

calculate the labor force productivity for alpha and beta

instructions: enter you answers in thousands (i.e. 100 for 100,000)

	gdp	population	labor force	labor force productivity
beta	$3,508 billion	1,393 million	756 million

what would have to be the gdp in beta for this country to have the same labor productivity as alpha?

instructions: enter your answers as whole numbers

Explanation:

Step1: Recall labor - force productivity formula

Labor - force productivity = $\frac{GDP}{Labor\ Force}$

Step2: Calculate labor - force productivity for Alpha

Alpha's GDP = $20494\times10^{6}$ (in thousands) and labor force = $159\times10^{6}$.
Labor - force productivity for Alpha = $\frac{20494\times10^{6}}{159\times10^{6}}\approx128.9$

Step3: Let Beta's GDP be $x$.

We want Beta's labor - force productivity to be equal to Alpha's. Beta's labor force = $756\times10^{6}$.
Since $\frac{x}{756\times10^{6}} = 128.9$
$x=128.9\times756\times10^{6}=97448.4\times10^{6}$ (in thousands) or $97448.4$ billion

Answer:

Alpha's labor - force productivity: approximately $128.9$ (in thousands)
Beta's required GDP for equal labor productivity: $97448.4$ billion