Suppose labor productivity is $110,000 per worker in 2015. Calculate the value of labor productivity in 2035 (20 years later) if: Instructions: Enter your responses rounded to the closest $100. a. Productivity continues to grow by 2.6 percent per year. U.S labor productivity in 2035 would be $ 183,798 183,798 Correct per worker. b. Productivity falls to 2.0 percent per year (the average productivity growth between 1970 and 2009). U.S. labor productivity in 2035 would be $ 163,454 163,454 Correct per worker. c. How much lager would labor productivity per worker be in 2035 with the higher growth rate compared to the lower growth rate. Instructions: Enter your responses rounded to two decimal places. 1.12

Respuesta :

Answer:

A. Based on a 2.6% productivity growth per year labor productivity will be $183,798 in 2035 (that is $73,798 improvement over 20 years)

B. Based on a 2.0% productivity growth per year labor productivity will be $163,454 in 2035 (that is $53,454 improvement over 20 years)

C. The difference between both growth scenarios is $20,343

Explanation:

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