Answer4 - 15 EDDBD 610 BCCAA 1115 DAEAB 1620 AEEEE 2125 BAEDB 2530 DEBDC 3135 DDABB 3640 CABAB Short answer questions 1 Average labor productivity

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Unformatted text preview: 15 EDDBD 610 BCCAA 1115 DAEAB 1620 AEEEE 2125 BAEDB 2530 DEBDC 3135 DDABB 3640 CABAB Short answer questions 1. Average labor productivity times the share of the population that is employed equals real GDP per person. Thus, average labor productivity equals real GDP per person divided by the share of the population employed. Using the data from Table 19.1, shown in the first two columns of the table below, along with the employment to population ratios from the problem, we can calculate average labor productivity, shown in the last two columns. Germany Japan In Germany, GDP per capita increased because of a rise in the employment population ratio. By contrast, in Japan virtually all of the increase in output per person increased labor productivity. 2. Using the relationship Y = C + I + G + NX, gross domestic product (Y) equals 4000 + 1000 + 1000 + 0 = 6000. National saving is Y C G = 6000 4000 1000 = 1000. The national saving rate is 1000/6000 = 16.7%. To find public saving, note that public saving equals the government budget surplus; this is in turn equal to tax collections less government purchases less transfers and interest payments, or 1500 1000 500 = 0. Since public saving plus private saving add to national saving, private saving must be 1000. GDP per capita 1979 $18,411 $14,912 2003 $25,188 $24,037 Employment to population 1979 0.33 0.48 2003 0.43 0.52 Average labor productivity 1979 $55,791 $31,067 2003 $58,577 $46,225 ...
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This note was uploaded on 04/09/2011 for the course ECON 201 taught by Professor Joyce during the Spring '07 term at Drexel.

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