Author Question: Describe the pattern of growth rates in real GDP per hour worked in the United States since the ... (Read 87 times)

joe · **on:** Jun 29, 2018

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?

Question 2

The price level in the economy between 2014 and 2015 rose from 100 to 105. Between 2015 and 2016, the price level rose from 105 to 110.25. How does the short-run Phillips curve predict the unemployment rate will change as a result?

A) The unemployment rate will decrease since inflation decreased.
B) The unemployment rate would not change since there is no change in the rate of inflation.
C) The unemployment rate will increase since inflation increased.
D) The unemployment rate will decrease since inflation increased.

Madisongo23 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

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.

Answer to Question 2

B