In 2008 output for the country of OZ was 12,000 tons of potatoes and the total labor force 1,100 workers. In 2009 output for the country of OZ was 14,300 tons of potatoes and the total labor force 1,150 workers.
b. The growth rate of average labor productivity between 2008 and 2009.
Is the answer 13.932% increase?
Also,
2008:
Employment = 1,000 workers
Unemployment = 100 workers
2009
Employment = 1,100 workers
Unemployment = 50 workers
Upon recalculation I believe my answer should be 8.33% instead of 13.93%.
To calculate the growth rate of average labor productivity between 2008 and 2009, we need to compare the change in output with the change in the labor force. Here are the steps to calculate it:
1. Calculate the output growth rate: Subtract the output in 2008 from the output in 2009 and then divide it by the output in 2008. Multiply the result by 100 to get the growth rate as a percentage.
Output Growth Rate = ((Output in 2009 - Output in 2008) / Output in 2008) * 100
In this case: ((14,300 - 12,000) / 12,000) * 100 = 18.333%
2. Calculate the labor force growth rate: Subtract the labor force in 2008 from the labor force in 2009 and then divide it by the labor force in 2008. Multiply the result by 100 to get the growth rate as a percentage.
Labor Force Growth Rate = ((Labor Force in 2009 - Labor Force in 2008) / Labor Force in 2008) * 100
In this case: ((1,150 - 1,100) / 1,100) * 100 = 4.545%
3. Calculate the growth rate of average labor productivity: Subtract the labor force growth rate from the output growth rate.
Growth Rate of Average Labor Productivity = Output Growth Rate - Labor Force Growth Rate
In this case: 18.333% - 4.545% = 13.788%
Therefore, the correct answer is 13.788%, not 13.932%.