Assume that total output is determined by this formula: Number of workers productivity = total output

Question:

Assume that total output is determined by this formula:
Number of workers × productivity = total output
(Output per worker)
(a) If the workforce is growing by 1 percent but productivity doesn't improve, how fast can output increase?
(b) If productivity increases by 3 percent and the number of workers increases by 1 percent a year, how fast will output grow?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Essentials of Economics

ISBN: 978-1259235702

10th edition

Authors: Bradley Schiller, Karen Gebhardt

Question Posted: