Answer to Question #176738 in Macroeconomics for nasiba

Question

In 2016, U.S. population was 320 million people, and U.S. employment was 160 million people. Using this information and the bar graph above, in 2016, U.S. productivity was approximately _____.

Group of answer choices

$37,500

$50,000

$100,000

$350,000

The GDP for 2016 was $50,000

Answer 1

Solution:

 

Productivity =$\frac{GDP}{Aggregate \;No. \;of \;labor\; hours}$

GDP = $50,000

Aggregate No. of labor hours =$\frac{U.S. \;employment}{U.S. \; population}$

= $\frac{160,000,000}{320,000,000} = 0.5$

Productivity = $\frac{50,000}{0.5} = 100,000$

U.S. productivity was approximately = $100,000