To explain:
The reason for sustained growth of real
Explanation of Solution
The labor productivity and aggregate hours play an important role in transforming a poor country into a rich one.
Labor productivity will increase the individual potential of the person, and thereby increase their individual earnings. This would as a result benefit the economy from higher disposable income to higher
The aggregate hours would be in accordance and thereby would fluctuate according to the productivity levels. The more the aggregate hours worked the better is the real GDP per person and ultimately better is the economy.
Real GDP:
Real GDP refers to the total value of goods and services within the national boundaries within a period of time, which have been adjusted for inflation.
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Chapter 25 Solutions
Foundations of Economics (8th Edition)
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc