Questions:
1. Summarize the history of US Labor productivity changes since World War II and explain why these changes matter
(Long-Term Productivity Growth) Suppose that two nations start out in 2013 with identical levels of output per workhour - say, $100 per hour. In the first nation, labor productivity grows by 2 percent per year. Use a calculator or a spreadsheet to determine how much output per hour each nation will be producing 20 years later, assuming that labor productivity growth rates do not change. Then, determine how much each will be producing per hour 100 years later. What do your results tell you about the effects of small differences in productivity growth rates?
2. Evaluate the evidence that technological change increases the unemployment rate
(Technological Change and Unemployment) What are some examples, other than those given in the chapter, of technological change that has caused unemployment? And what are some examples of new technologies that have created jobs? How do you think you might measure the net impact of technological change on overall employment and GDP in the United States?