Answer to Question #98556 in Microeconomics for Rose

Question #98556
If the average worker produces $100,000 of GDP, by how much will GDP increase if there are 150 million in the labor force and unemployment falls from 6.0% to 5.5%?
1
Expert's answer
2019-11-13T09:02:10-0500

If there are 150 million in the labor force and unemployment falls from 6.0% to 5.5%, then the number of employed will increase by 150×0.005 = 0.75 million or 750,000.

So, GDP will increase by 750,000×100,000 = $75 billion.



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