Homework Answers
Labor productivity = Y / L
% Δ Labor productivity = % Δ Y - % ΔL
Given :
% ΔY = 3
% ΔL = 2
% Δ Labor productivity = 3 - 2
% Δ Labor productivity = 1.
Hence, the labor productivity annual growth rate is 1%
Thus, Option E is correct.
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