Answer to Question #98556 in Microeconomics for Rose

Question #98556
If the average worker produces $100,000 of GDP, by how much will GDP increase if there are 150 million in the labor force and unemployment falls from 6.0% to 5.5%?
1
Expert's answer
2019-11-13T09:02:10-0500

If there are 150 million in the labor force and unemployment falls from 6.0% to 5.5%, then the number of employed will increase by 150×0.005 = 0.75 million or 750,000.

So, GDP will increase by 750,000×100,000 = $75 billion.



Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS