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ECN 101/Fall 2011
Homework #4
Evelyn Tavares
1.
The real GDP in the first quarter of 2011 was found to be $600,000 and the number
of hours worked was 10,000. In the second quarter of 2011, the real GDP increased
to $880,000 while the number of hours worked increased to 11,000. Given these
values, solve for labor productivity in both quarters and solve for the growth rate of
labor productivity between the quarters.
1
st
Quarter
2
nd
Quarter
Real GDP $600,000
Real GDP $880,000
Hours Worked 10,000
Hours Worked 11,000
Labor Productivity = Total Output (GDP)/Total hours worked
1
st
Quarter
LP = 600,000/10,000
LP = 60
2
ND
Quarter
LP = 880,000/11,000
LP = 80
Growth Rate of Labor Productivity
GRLP=( 8060/60) *100
GRLP = 0,3333333…*100
GRLP = 33,33%
2. The latest unemployment findings by the Bureau of Labor Statistics turned up the
following results. Cyclical unemployment is 5%, structural unemployment is 2%,
and frictional unemployment is 2%.
b. What is the current unemployment rate?
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This note was uploaded on 03/01/2012 for the course ECON 101 taught by Professor M.h.baligh during the Spring '09 term at Bergen Community College.
 Spring '09
 M.H.BALIGH
 Macroeconomics

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