Using the following data for the U.S. economy, address the following:
-Calculate the growth rate between two periods.
-Calculate labor productivity and the growth rate in labor productivity.
Year 2009, real GDP is $9,000 billion, and aggregate hours is 300 billion hours.
Year 2010, real GDP is $9,300 billion, and aggregate hours is 300 billion hours.
Growth rate (%) of real gross domestic product (GDP) between 2009 and 2010 = ?
Growth rate (%) of labor productivity between 2009 and 2010 = ?
Step 2 Look at the differences in per capita GDP growth of the following countries in 2006:
United States = 1.9%
Canada = 1.7%
India = 7.7%
China = 10.1%
Step 3 Using the growth rates you calculated in Step 1, answer the following questions:
What do the different growth rates in per capita GDP imply about the differences in per capita GDP between 2006 and now?
What factors, such as international trades, might explain such differences in per capital GDP growth rates?
What are some other potential sources of economic growth?