Question

w e lansate Principles of Econo. Hist 3398-03 Free books a Blogs - Spring 2020... Chapter 7 Homework i Saved Help Save & E Suppose labor productivity is $100,000 per worker in 2015. Calculate the value of labor productivity in 2035 20 years later): Instructions: Enter your responses rounded to the closest $100. points a. Productivity grow. by 4.3 percent per year. U.S labor productivity in 2035 would be $ per worker eBook b. Productivity is lower growing by only 2.5 percent per year. U.S. labor productivity in 2035 would be $ per worker. Print c. How much lager would labor productivity per worker be in 2035 with the higher growth rate compared to the lower growth rate. References Instructions: Enter your responses rounded to two decimal places. times higher

Answer 1

solution: labor productivity = $ 100000 per worker in 2015 No. of years blu 2015 to 2035 is 20'. (a) productivity grows by 4.3% per year. as labor productivity in 2035. = 100000 (1+0.043320 (6) = 232 105.89 ~$232106 d's labor productivity in 2035 would be $ 232 106 a per worker. productivity is lower, growing by only 25% per year. us labor productivity in 2035 = 100000 (170.0250 = 163861.64 $$163862 us haber productivity in 2035 would be $ 163862 per worker.

(C) Growth rate 4.3% 2.5% labor pooductivity in 2035 232106 163862 232106 163862 7 = 1.416 times higher habor productivity per worker be in 2035 with the higher growth rate compared to lower growth rate is 1.416 times higher.