1.

a. Calculate the total percentage growth in average labor productivity in the U.S. economy for the 1950s, 1960s, 1970s, 1980s, and 1990s. Define average labor productivity for any year as real gross domestic product in the last quarter of the year divided by civilian 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 g is the annual growth rate, expressed as a decimal (for example, 0.05 for 5°/o), 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 five decades, use your calculated values for G and the formula above to solve for g.

b. Calculate annual labor productivity growth rates for each year since 2000 for which data are available. How do the recent growth rates compare with those of the five previous decades?