1.

a. Calculate the total percentage growth in average labor productivity in the U.S. economy for the 1950s, 1960s, 1970s, 1980s, 1990s, and 2000s. To do this, calculate average labor productivity in the last year of each decade beginning in 1949 as real gross domestic product in the last quarter of the year divided by non-farm payroll employment in the last month of the year. In which decades did average labor productivity grow the most quickly overall? The most slowly? Express the growth rates for each decade in annualized terms by using the formula

(1 +g)10

= 1+G where is the annual growth rate, expressed as a decimal g

(for example, 0.05 for 5%), and G

is the growth rate for the decade (the change in productivity during the decade divided by the initial productivity level). For each of the six decades, use your calculated values for formula above to solve for .

g G

and the

b. Calculate annual labor productivity growth rates for each year since 2010 for which data are available. (Define average labor productivity for each year as real gross domestic product in the last quarter of the year divided by non-farm payroll employment in the last month of the year.) How do the recent growth rates compare with those of the six previous decades?