What is the difference between real GDP per worker and real GDP per effective worker?
What will be an ideal response?
Real GDP per worker is measured as Y/L = y × E. Real GDP per effective worker is measured as y = Y / (E × L), where (E × L) measures effective workers. Real GDP per effective worker is constant in the steady state, and real GDP per worker will grow when the economy is in the steady state.
You might also like to view...
As demand and supply become more elastic, taxes reduce market output more and raise less tax revenue. ?
Answer the following statement true (T) or false (F)
The U.S. rate of productivity growth in the 1970s and 1980s was _____ the rate of productivity growth in the 1960s.
A. twice B. one and a half times C. equal to D. one third
If an exhaustible resource is scarce, has constant marginal cost over time, and is sold in a competitive market, then
A) its price increases over time. B) its price will not be a function of the interest rate. C) its price moves independently of past prices. D) its price equals marginal cost.
When Xt is strictly exogenous, the following estimator(s) of dynamic causal effects are available:
A) estimating an ADL model and calculating the dynamic multipliers from the estimated ADL coefficients B) using GLS to estimate the coefficients of the distributed lag model C) neither (a) or (b) D) (a) and (b)