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Exercise 8-1: Growth and Productivity Suppose that a hypothetical economy called New Zombie has 10 workers in year 1, each working 2000 hours per year

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Exercise 8-1: Growth and Productivity Suppose that a hypothetical economy called New Zombie has 10 workers in year 1, each working 2000 hours per year (50 weeks at 40 hours per week) and the labour productivity (average real output per worker-hour) is $10 per hour. a) What is the real GDP in year 1? b) If worker-hours rise by 1 percent and labour productivity rises to $10.40 per hour in year 2, what is New Zombie's rate of economic growth for the year 2

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