ECON Lesson 7

ECON Lesson 7 - Ashlie Michelle Ferguson ECON 2010...

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Ashlie Michelle Ferguson ECON 2010 Enrollment #642885 Lesson 7 1. There are two sources that will increase living standards: average labor productivity and share of population employed. However, the number of persons employed is only a “short term” fix for high living standards. This is because there is usually a reason that more of the population is going to work, and the trend will not continue. For example, between 1960 and 1999, the number of people employed rose significantly. This was because of the growing number of women going to work outside of their home. But, this trend will not continue at the high rate of growth experienced in the past. In the long run, this source for increasing living standards will not continue. Therefore, we must look at the other source mentioned, average labor productivity. Between 1960 and 1999, average labor productivity increased 85%, making up almost all of the percentage increase in real GDP per person. Other studies have also shown a stronger link between living standards and
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This note was uploaded on 05/11/2010 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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ECON Lesson 7 - Ashlie Michelle Ferguson ECON 2010...

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