Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century. Has output per hour worked consistently increased at the same rate? Explain
What will be an ideal response?
Growth in real GDP per hour worked averaged 1.3% throughout the nineteenth century and then increased to over 2% until the mid-1970s (when it fell to 1.3% again). Productivity slowed dramatically during the mid-1970s, but the emergence of the "new economy" saw average annual growth rates in GDP per hour worked rebound to 2.4% from 1996 - 2005, and then slowed to 1.2% from 2006-2014.
You might also like to view...
Refer to Table 15-5. Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
Suppose that the Fed uses an appropriate policy and is successful in keeping real GDP at potential in 2017. State whether each of the following will be higher or lower than if the Fed had taken no action: a. Real GDP b. Potential real GDP c. The price level d. The unemployment rate
One objection to the notion of Ricardian Equivalence is that ________
A) households will recognize that a tax cut today will only lead to a tax increase in the future B) individuals are short-sighted in their spending decisions C) borrowing constraints have largely been eliminated due to financial innovation in the provisioning of consumer credit D) households typically save most of the monies received from a tax cut