Macroeconomic information for the economy of Anchovy is given below
(a) What was the growth rate of average labor productivity in Anchovy between Year 1 and Year 2? (b) What was the inflation rate in Anchovy between Year 1 and Year 2? (c) What was the unemployment rate in Year 1? In Year 2?
(a) Average labor productivity: Year 1: 8000/700 = 80/7; Year 2: 9000/800 = 90/8; growth rate = [(90/8 )/(80/7 )] - 1 = -0.016 = -1.6%
(b) Inflation rate: (9/8 ) - 1 = 0.125 = 12.5%
(c) Unemployment rates: Year 1: 70/770 = 0.091 = 9.1%; Year 2: 100/900 = 0.111 = 11.1%
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