The Solow growth model predicts that in the steady state, output per worker grows at the rate of growth in total factor productivity (TFP). Use the ratio of real GDP to total employment (from the current population survey) as a measure of output per worker, and plot this. At what rate does this measure of output per worker grow, on average? What does this tell us about TFP growth?

Answer this question using the Federal Reserve Bank of St. Louis’s FRED database, accessible at http://research.stlouisfed.org/fred2/