What is the equation for Real GDP in terms of labor? Explain the factors that go into each component.
What will be an ideal response?
Real GDP = labor inputs (hours of work) x labor productivity (average output per hour)
The factors that influence labor inputs (hours of work) include size of employed labor force and average hours of work. The factors that influence labor productivity include technological advance, quantity of capital, education and training, vocative efficiency, and other influences.
You might also like to view...
A consumer is willing to pay $5 for a ball. If the market price of the ball increases from $2 to $3, consumer surplus will _____
a. decrease by $1 b. increase by $2 c. reduce by $5 d. increase by $3
Consider two goods--one that generates external costs and another that generates external benefits. The actual market outcome would
a. result in output that is lower than the efficient output for both goods. b. result in output that is higher than the efficient output for both goods. c. result in output that is lower than the efficient output for the good with an external benefit and output that is higher than the efficient output for the good with an external cost. d. result in output that is higher than the efficient output for the good with an external benefit and output that is lower than the efficient output for the good with an external cost.
Price Per UnitQuantity Demanded Per Unit of Time$2012$1817$1620$1424$1230$1036$840$644$448Refer to the above data. Over which price range is the price elasticity of demand inelastic?
A. $12-$10 B. $18-$16 C. $20-$18 D. $10-$8
Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s). In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.Recall the Application. As the world price of wool decreased, the quantity of wool supplied by individual ranchers would ________, and the quantity supplied in the world market would ________.
A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase