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In 1987, Canada produced $933 billion with 29 billion hours of labour per year. Use the labour market and the labour productivity graphs from chapter
In 1987, Canada produced $933 billion with 29 billion hours of labour per year. Use the labour market and the labour productivity graphs from chapter 6 (Economic Growth) to answer the following questions.
- The working age population increased from 20.3 million in 1987 to 26.6 million in 2007 and as a result, the hours of labour increased to 38 billion hours. Show the effect of the population (and total hours of labour) increase on labour market and the aggregate production curves (specifying the exact value of the new GDP per capita is not necessary).
- Because of an increase in labour productivity, demand for labour and, therefore, employment and production have risen. Show the effect of an increase in labour productivity on the albour market and aggregate production curves (specifying the exact value of the new GDP per capita is not necessary).
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