Problem
1. If output rises by 35 percent while hours of work increase by 40 percent, has productivity increased or decreased? By how much?
2. Most economists believe that from 2003 to 2006, actual GDP in the United States grew faster than potential GDP. What, then, should have happened to the unemployment rate over those three years? Then, from 2006 to 2009, actual GDP likely grew slower than potential GDP. What should have happened to the unemployment rate over those three years? (Check the data on the inside back cover of this book to see what actually happened.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.