What is the equation for Real GDP in terms of labor? Explain the factors that go into each component.
What will be an ideal response?
Real GDP = labor inputs (hours of work) x labor productivity (average output per hour)
The factors that influence labor inputs (hours of work) include size of employed labor force and average hours of work. The factors that influence labor productivity include technological advance, quantity of capital, education and training, vocative efficiency, and other influences.
You might also like to view...
Refer to Figure 9-2. With the tariff in place, the United States produces
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
A monopoly firm is a ______________ and faces a __________ sloping demand curve
a. Price taker; horizontal b. Price searcher; horizontal c. Price searcher; downward d. Price taker; downward