PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 4, Problem 2P
To determine
Describe the possibility of average living standard to rise during labor productivity falls.
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The "graying of America" will substantially increase the fraction of the population that is retired in the decades to come. To illustrate
the implications for U.S. living standards, suppose that over the 56 years following 2016 the share of the population that is working
returns to its 1960 level, while average labor productivity increases at the same rate as it did during 1960-2016. Under this scenario,
what would be the net change in real GDP per person between 2016 and 2072?
Average labor productivity
47,263
110,384
Instructions: Enter your response as whole numbers for dollar values and rounded to one decimal place for percentages.
Real GDP per person in 2016: $
Real GDP per person in 2072: $
Net change in real GDP per person between 2016 and 2072: $
Year
1960
2016
Share of population employed
36.4%
46.8%
which is an increase of
% from 2016.
The “graying of America” will substantially increase the fraction of the population that is retired in the decades to come. To illustrate the implications for U.S. living standards, suppose that over the 56 years following 2016 the share of the population that is working returns to its 1960 level, while average labor productivity increases at the same rate as it did during 1960–2016. Under this scenario, what would be the net change in real GDP per person between 2016 and 2072?
Year
Average labor productivity
Share of population employed
1960
47,263
36.4%
2016
110,384
46.8%
Instructions: Enter your response as whole numbers for dollar values and rounded to one decimal place for percentages.Real GDP per person in 2016: $51,660
(need help) Real GDP per person in 2072: $
(need help) Net change in real GDP per person between 2016 and 2072: $____________ , which is an increase of___________ % from 2016.
The “graying of America” will substantially increase the fraction of the population that is retired in the decades to come. To illustrate the implications for U.S. living standards, suppose that over the 56 years following 2016 the share of the population that is working returns to its 1960 level, while average labor productivity increases at the same rate as it did during 1960–2016. Under this scenario, what would be the net change in real GDP per person between 2016 and 2072?
Year
Average labor productivity
Share of population employed
1960
47,263
36.4%
2016
110,384
46.8%
Instructions: Enter your response as whole numbers for dollar values and rounded to one decimal place for percentages.(need help)Real GDP per person in 2016: $
(need help) Real GDP per person in 2072: $
(need help) Net change in real GDP per person between 2016 and 2072: $____________ , which is an increase of___________ % from 2016.
Chapter 4 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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