Question
Weve modeled economic growth in terms of output per worker. 1. In between 1900 and 2000, the womens labour force participation rate (LFPR) in Canada
We"ve modeled economic growth in terms of output per worker. 1. In between 1900 and 2000, the womens labour force participation rate (LFPR) in Canada has increased from approximately 15% to approximately 60%. At the same time, mens LFPR fell from approximately 90% to approximately 75%. We also saw that approximately 50% of the Canadian population are in the labour force (in 2000). Other things equal (i.e., assume constant productivity, technology, demographics, etc.), how much would the Canadian GDP per capita increase (from 1900 to 2000) due to these changes in the LFPR? Give the number and explain how you got it. (4) 2. (unrelated to the first question) The standard of living is better represented by GDP per capita, not by GDP. What would be the advantages of having a greater GDP (not per capita, just GDP)? Discuss in short. (4)
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