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C h a p t e r

6 ECONOMIC
GROWTH**

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Answers to the Review Quizzes
Page 138 (page 546 in Economics)
1. What is economic growth and how do we calculate its rate?
Economic growth is the sustained expansion of production possibilities. It is measured by the
increase in real GDP over a given time period. The economic growth rate is the annual percentage
change in real GDP.
2. What is the relationship between the growth rate of real GDP and the growth rate of real GDP
per person?
The growth rate of real GDP tells how rapidly the total economy is expanding while the growth
rate of real GDP per person tells how the standard of living is changing. The growth rate of real
GDP per person approximately equals the growth rate of real GDP minus the population growth
rate.
3. Use the Rule of 70 to calculate the growth rate that leads to a doubling of real GDP per person
in 20 years.
The rule of 70 states that the number of years it takes for the level of any variable to double is
approximately equal to 70 divided by the growth rate. If the level of real GDP doubles in 20 years,
the rule of 70 gives 20 = 70  (growth rate) so that the growth rate equals 70  20, which is 3.5
percent per year.

Page 141 (page 549 in Economics)


1. What has been the average growth rate of U.S. real GDP per person over the past 100 years? In
which periods was growth most rapid and in which periods was it slowest?
Over the past 100 years, U.S. real GDP per person grew at an average rate of 2 percent per year.
Slow growth occurred during mid-1950s and 1973–1983. Very slow growth (negative growth!)
also occurred during the Great Depression. Growth was rapid during the 1920s and 1960s. Growth
was also (extremely!) rapid during World War II.
2. Describe the gaps between real GDP per person in the United States and in other countries.
For which countries is the gap narrowing? For which is it widening? For which is it the same?
Some rich countries are catching up with the United States, but the gaps between the United States
and many poor countries are not closing. Amongst the rich countries, for about the ten years after
1980 Japan closed the gap with the United States but then it widened back to what it was initially
while the gaps between the United States and Canada, and the “Europe Big 4” (France, Germany,
Italy, and the United Kingdom) have tended to remain constant. The gap between Russia and the
United States initially widened, then rapidly narrowed and recently has been widening again. The
gap between Mexico and the United States has widened, though the rate of widening seems to
have slowed. The gap between the United States and Nigeria has narrowed slightly. Some nations
in Asia— including Hong Kong, Singapore, Korea, and China—have grown very rapidly. The gap
between these nations and the United States has shrunk; indeed, Singapore has slightly surpassed
the United States and Hong Kong has virtually tied the United States.
3. Compare the growth rates in Hong Kong, Korea, Singapore, Taiwan, China, and the United
States. In terms of real GDP per person, how far is China behind these others?
Since 1980, income per person in the nations of Hong Kong, Singapore, Korea, Taiwan, and China
have grown very rapidly and are rapidly catching up to the United States. Income per person in
Hong Kong is virtually the same as that in the United States and income per person in Singapore
slightly exceeds that in the United States. Income in Korea also is relatively close. Income in

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82 CHAPTER 6

China is the lowest, though recently China has been growing the most rapidly. China’s level of
income in 2016 is similar to that of Hong Kong in 1980.

Page 147 (page 555 in Economics)


1. What is the aggregate production function?
The aggregate production function is the relationship that tells us how real GDP changes as the
quantity of labor changes when all other influences on production remain the same.
2. What determines the demand for labor, the supply of labor, and labor market equilibrium?
The demand for labor is the relationship between the quantity of labor demanded and the real
wage rate. A fall in the real wage rate increases the quantity of labor demanded because of
diminishing returns. The demand for labor also depends on productivity. If productivity increases,
the demand for labor increases.
The supply of labor is the relationship between the quantity of labor supplied and the real wage
rate. An increase in the real wage rate increases the quantity of labor supplied because more
people enter the labor force and the hours supplied per person increases.
The real wage adjusts so that the labor market is in equilibrium. If the real wage rate is above
(below) its equilibrium, there is a surplus (shortage) of labor that then causes the real wage rate to
fall (rise). For example, if the real wage rate is above the equilibrium level, there is a surplus of
labor so the real wage rate falls until it reaches its equilibrium. The equilibrium quantity of
employment is the full employment quantity of labor.
3. What determines potential GDP?
Potential GDP is determined from the labor market equilibrium. When the labor market is in
equilibrium, there is full employment. The quantity of real GDP produced by the full employment
quantity of labor is potential GDP.
4. What are the two broad sources of potential GDP growth?
The two broad sources of growth in potential GDP are growth of the supply of labor and growth of
labor productivity.
5. What are the effects of an increase in the population on potential GDP, the quantity of labor,
the real wage rate, and potential GDP per hour of labor?
An increase in population increases the supply of labor. Employment increases and the real wage
rate falls. The increase in employment creates a movement along the aggregate production
function so potential GDP increases. Because of diminishing returns, potential GDP per hour of
labor decreases.
6. What are the effects of an increase in labor productivity on potential GDP, the quantity of
labor, the real wage rate, and potential GDP per hour of labor?
The increase in labor productivity shifts the aggregate production function curve upward. The
demand for labor increases, and the demand for labor curve shifts rightward. The increase in the
demand for labor raises the real wage rate and increases employment. The increase in employment
as well as the upward shift of the aggregate production function increase potential GDP. Potential
GDP per hour of labor increases.

Page 149 (page 555 in Economics)


1. What are the preconditions for labor productivity growth?
The fundamental preconditions for labor productivity growth are the existence of: firms, markets,
property rights, and money. These fundamental preconditions create an incentive system that can
lead to labor productivity growth.

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ECONOMIC GROWTH 83

2. Describe the sources of economic growth and identify the source of the growth slowdown.
Economic growth can be divided into two sources: Growth in work hours and growth in labor
productivity. Both sources contributed to the slowdown in economic growth in the 2000s. Growth
in work hours, after growing slowly between 1989 and 1999, disappeared in the 2000s and
contributed nothing to economic growth. Growth in productivity, while not totally disappearing,
slowed compared to previous eras. For both reasons, economic growth in the 2000s has been less
than during other periods.
3. Explain the influences on the pace of labor productivity growth.
Once the preconditions for growth are in place, the sources of labor productivity growth are:
physical capital growth, human capital growth, and advances in technology. All of these activities
enable an economy to grow and they all increase labor productivity. They all also interact: human
capital creates new technologies, which are then embodied in both new human capital and new
physical capital. Similarly advances in technology also lead to increases in labor productivity.

Page 155 (page 559 in Economics)


1. What is the key idea of classical growth theory that leads to the dismal outcome?
The “dismal outcome” in classical theory is the conclusion that in the long run real GDP per
person equals the subsistence level. In classical growth theory, an increase in real GDP per person
causes population increases that return real GDP per person to the subsistence level. In the
classical growth theory, an increase in income creates a population boom. The increase in
population increases the supply of labor. Because of diminishing returns to labor, the increase in
the supply of labor lowers the real wage rate and people’s incomes. Eventually the real wage rate
falls to equal the subsistence level, at which time the population stops growing.
2. What, according to neoclassical growth theory, is the fundamental cause of economic growth?
In neoclassical growth theory, growth results from technological advances, which are determined by
chance.
3. What is the key proposition of new growth theory that makes economic growth persist?
The key proposition that makes growth persist indefinitely in the new growth theory is the
assumption that the returns to knowledge and human capital do not diminish. As a result, increases
in knowledge do not cause diminishing returns and the incentive to innovate remains high. As
people accumulate more knowledge, the incentive to innovate does not fall and so people continue
to innovate new and better ways to produce new and better products. This innovation means that
economic growth persists indefinitely.
Answers to the Study Plan Problems and Applications
1. Mexico’s real GDP was 14,461 billion pesos in 2016 and 14,702 billion pesos in 2017. Mexico’s
population was 121 million in 2016 and 122 million in 2017. Calculate
a. The growth rate of real GDP. Between 2016 and 2017 this growth rate equals [(14,702 billion pesos 
14,461 billion pesos)/14,461 billion pesos]  100, which is 1.7 percent.
b. The growth rate of real GDP per person.
Mexico’s population grew at [(122 million  121 million)/121 million]  100, which is 0.8 percent.
Mexico’s growth rate of real GDP is 1.7 percent, so the growth rate of real GDP per person is 1.7
percent  0.8 percent, or 0.9 percent.
c. The approximate number of years it takes for real GDP per person in Mexico to double if the
2017 growth rate of real GDP and the population growth rate are maintained.
Mexico’s real GDP per person is growing at 0.9 percent a year. The rule of 70 tells us that
Mexico’s real GDP per person will double in 70/0.9 = 77.8 years.

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84 CHAPTER 6

2. The IMF projects that China’s real GDP per person will be 57,163 yuan in 2017 and 60,334
yuan in 2018 and that India’s real GDP per person will be 98,028 rupees in 2017 and 104,191
rupees in 2018. By maintaining their current growth rates, which country will be first to
double its standard of living and when will that happen?
China’s growth rate of real GDP per person is [(60,334 yuan  57,163 yuan)/57,163 yuan]  100,
which is 5.5 percent. India’s growth rate of real GDP per person is [(104,191 rupees  98,028
rupees)/98,028 rupees]  100, which is 6.3 percent. China’s real GDP per person will double in
approximately 70/5.5 = 12.7 years and India’s real GDP per person will double in approximately
70/6.3 = 11.1 years, so India’s standard of living will double first in about the year 2029.
3. China was the largest economy for centuries because everyone had the same type of economy
—subsistence—and so the country with the most people was economically biggest. Then the
Industrial Revolution sent the West on a more prosperous path. Now the world is returning to
a common economy, this time technology- and information-based, so once again population
triumphs.
a. Why was China the world’s largest economy until 1890?
GDP equals GDP per person multiplied by the number of people. Until 1890 most people in the
world had approximately the same subsistence level of income so that every nation’s GDP per
person was about the same. Because China had, by far, the world’s largest population, China also
had the world’s largest GDP.
b. Why did the United States surpass China in 1890 to become the world’s largest economy?
The United States benefited from the industrial revolution that was sweeping Western nations at
the time while China did not. U.S. economic growth accelerated well beyond Chinese economic
growth so that the U.S. GDP became larger than China’s GDP.
Use the following tables to work Problems 4 to 6.
The first table describes an economy’s labor market in 2018 and the second table describes its production function in 2018.

Real wage rate Labor hours Labor hours Labor Real GDP
(dollars per hour) supplied demanded (hours) (2009 dollars)
80 45 5 5 425
70 40 10 10 800
60 35 15 15 1,125
50 30 20 20 1,400
40 25 25 25 1,625
30 20 30 30 1,800
20 15 35 35 1,925
40 2,000
4. What are the equilibrium real wage rate, the quantity of labor employed in 2018, labor
productivity, and potential GDP in 2018?
The equilibrium real wage rate is $40 per hour and the equilibrium quantity of labor employed is
25 hours. With employment of 25 hours, the production function shows that potential GDP is
$1,625. Labor productivity equals $1,625  25 hours, or $65.00 per hour.
5. In 2019, the population increases and labor hours supplied increase by 10 at each real wage
rate. What are the equilibrium real wage rate, labor productivity, and potential GDP in 2019?
The equilibrium real wage rate is $30 per hour and the equilibrium quantity of employment is 30
hours. With employment of 30 hours, the production function shows that real GDP is $1,800.
Labor productivity equals $1,800  30 hours, or $60.00 per hour.

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ECONOMIC GROWTH 85

6. In 2019, the population increases and labor hours supplied increase by 10 at each real wage
rate. Does the standard of living in this economy increase in 2019? Explain why or why not.
The standard of living does not increase. In fact, it decreases because real GDP per person falls.
The economy moves along its production function so that potential GDP increases but real GDP
per person decreases.
7. Labor Productivity on the Rise
The BLS reported the following data for the year ended March 2017: In the nonfarm sector,
output increased by 2.5 percent and labor productivity increased 1.2 percent. In the
manufacturing sector, output increased by 0.9 percent and labor productivity increased by 0.3
percent.
Source: bls.gov/news.release, June 5, 2017
In both sectors, output and labor productivity increased. Did the quantity of labor (aggregate
hours) increase or decrease? In which sector was the change in the quantity of labor larger?
Labor productivity equals real GDP divided by aggregate labor hours, so aggregate labor hours
equals real GDP divided by labor productivity. In terms of growth rates, this last formula means
that the growth in aggregate labor hours approximately equals the growth in real GDP minus the
growth in labor productivity. (This is the same calculation as on page 544 of the text for the
approximation formula for growth in real GDP per person.) Using this equation, in the nonfarm
sector labor hours rose by 2.5 percent – 1.2 percent = 1.3 percent and in the manufacturing sector
labor hours rose by 0.9 percent – 0.3 percent = 0.6 percent. The change in the quantity of labor
was the largest in the nonfarm sector.
8. Explain the processes that will bring the growth of real GD P per person to a stop according to
a. Classical growth theory.
According to the classical theory, population growth continues at a rapid pace as long as real GDP
per person exceeds the subsistence level. With population growth, the supply of labor increases
and diminishing returns lowers real GDP per person. Eventually real GDP per person equals the
subsistence amount, at which time economic growth ends.
b. Neoclassical growth theory.
In the neoclassical model, technological growth leads to increased saving so that capital
accumulates and real GDP per person grows. When technological growth stops, capital continues
to accumulate but diminishing marginal returns drives the return on capital lower and so decreases
investment and saving. Eventually the capital stock stops growing and economic growth stops.
c. New growth theory.
According to the new growth theory, economic growth will not stop.

Answers to Additional Problems and Applications


9. In 2018 Brazil’s real GDP is growing at 1.7 percent a year and its population is growing at 0.7
percent a year. If these growth rates continue, in what year will Brazil’s real GDP per person
be twice what it is in 2018?
The growth rate of real GDP per person equals the growth rate of real GDP minus the population
growth rate. Brazil’s real GDP per person is growing at a rate of 1.7 percent – 0.7 percent = 1.0
percent. Then using the rule of 70, it will take 70/1.0 = 70 years for Brazil’s real GDP per person
to double, which means it will double in approximately 2088.

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86 CHAPTER 6

10. Canada’s real GDP was $C1,830 billion in 2017 and $C1,866 billion in 2018. Canada’s
population was 36.7 million in 2017 and 37.1 million in 2018. Calculate
a. The growth rate of real GDP.
Between 2018 and 2017 this growth rate equals [($C1,866 billion  $C1,830 billion)/$C1,830
billion]  100, which is 2.0 percent.
b. The growth rate of real GDP per person.
Canada’s population grew at [(37.1 million  36.7 million)/36.7 million]  100, which is 1.1
percent. Canada’s growth rate of real GDP is 2.0 percent, so the growth rate of real GDP per
person is 2.0 percent  1.1 percent, or 0.9 percent.
c. The approximate number of years it takes for real GDP per person in Canada to double if the
2018 growth rate of real GDP and the population growth rate are maintained.
Canada’s real GDP per person is growing at 0.9 percent a year. The rule of 70 tells us that
Canada’s real GDP per person will double in 70/0.9 = 77.8 years.
11. Australia’s real GDP was $A1,730 billion in 2017 and $A1,782 billion in 2018. Australia’s
population was 24.6 million in 2017 and 25.0 million in 2018. Calculate
a. The growth rate of real GDP.
The growth rate of real GDP between 2017 and 2018 is [($A1,782 billion  $A1,730
billion)/$A1,730 billion]  100 = 3.01 percent.
b. The growth rate of real GDP per person.
Australia’s population growth rate is equal to [(25.0 million  24.6 million)/24.6 million]  100,
which is 1.63 percent. Australia’s economic growth rate is 3.01 percent, so the growth rate of real
GDP per person is 3.01 percent  1.63 percent, or 1.38 percent.
c. The approximate number of years it will take for real GDP per person in Australia to double
if the current real GDP and population growth rate maintained.
Australia’s real GDP per person is growing at 1.38 percent a year. The rule of 70 tells us that
Australia’s real GDP per person will double in 70/1.38 = 50.7 years.
12. A Shifting Global Economic Landscape
Global growth for 2016 is estimated at 3.1 percent. Advanced economies are projected to grow
by 1.9 percent in 2017 and 2.0 percent in 2018. The primary factor underlying the
strengthening global outlook over 2017–18 is the projected pickup in developing economies’
growth estimated at 4.1 percent in 2016, and projected to reach 4.5 percent for 2017. A further
pickup in growth to 4.8 percent is projected for 2018. Notably, the growth forecast for 2017
was revised up for China to 6.5 percent.
Source: International Monetary Fund, January 2017
Do the growth rates projected by the IMF indicate that gaps in real GDP per person around the
world are shrinking, growing, or staying the same? Explain.
The data in the news clip indicate that the gap in real GDP between the advanced economies and
the developing economies will decrease a bit in 2017 and 2018 because the developing economies
are projected to grow about 2.5 percentage points more rapidly than the advanced economies. As
long as the population in the developing economies grows less than 2.5 percentage points more
rapidly than growth in the advanced economies, the gap in real GDP per person will also shrink.
13. If a large increase in investment increases labor productivity, explain what happens to
a. Potential GDP.
The production function curve shifts upward and equilibrium employment increases, both of which
increase potential GDP.

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ECONOMIC GROWTH 87

b. Employment.
Employment increases. The demand for labor increases, which increases equilibrium employment.
c. The real wage rate.
The real wage rate rises. The demand for labor increases, which raises the equilibrium real wage
rate.
14. If a severe drought decreases labor productivity, explain what happens to
a. Potential GDP.
The production function curve shifts downward and equilibrium employment decreases, both of
which decrease potential GDP.
b. Employment.
Employment decreases. The demand for labor decreases, which decreases equilibrium
employment.
c. The real wage rate.
The real wage rate falls. The demand for labor decreases, which lowers the equilibrium real wage
rate.
Use the following tables to work Problems 15 to 17.
The first table describes an economy’s labor market in 2018 and the second table describes its production function in 2018.

Real wage rate Labor hours Labor hours Labor Real GDP
(dollars per hour) supplied demanded (hours) (2009 dollars)
80 55 15 15 1,425
70 50 20 20 1,800
60 45 25 25 2,125
50 40 30 30 2,400
40 35 35 35 2,625
30 30 40 40 2,800
20 25 45 45 2,925
50 3,000
15. What are the equilibrium real wage rate and the quantity of labor employed in 2018?
The equilibrium real wage rate is $40 per hour and the equilibrium quantity of labor employed is
35 hours.
16. What are labor productivity and potential GDP in 2018?
Potential GDP is $2,625, the quantity of real GDP produced with the equilibrium quantity of
employment. Labor productivity equals $2,625  35 hours, or $75.00 per hour.
17. Suppose that labor productivity increases in 2018.What effect does the increased labor
productivity have on the demand for labor, the supply of labor, potential GDP, and real GDP
per person?
The increase in labor productivity increases the demand for labor. The supply of labor does not
change. The equilibrium wage rate rises and equilibrium employment increases. Potential GDP
increases for two reasons: First, the increase in labor productivity increases potential GDP; second,
the increase in equilibrium employment increases potential GDP. Real GDP per person increases.

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88 CHAPTER 6

18. India’s Economy Hits the Wall


Just six months ago, India was looking good. Annual growth was 9%, consumer demand was
huge, and foreign investment was growing. But now most economic forecasts expect growth
to slow to 7%—a big drop for a country that needs to accelerate growth. India needs urgently
to upgrade its infrastructure and education and health-care facilities. Agriculture is
unproductive and needs better technology. The legal system needs to be strengthened with
more judges and courtrooms.
Source: BusinessWeek, July 1, 2008
Explain five potential sources for faster economic growth in India suggested in this news clip.
One suggested source of increased economic growth is increased infrastructure investment.
Infrastructure includes factors such as roads, ports, railways, and electricity transmission. The
second suggestion mentioned is to raise education achievement. This recommendation, while not a
short-term fix, would be quite powerful at raising India’s long-term growth. The third factor is to
increase health-care facilities. Better health care for its citizens translates into increased labor
productivity because India’s workers would be better able to work in the marketplace. The fourth
source of increased economic growth is to increase productivity in agriculture. This suggestion,
however, is not well detailed; in particular, it is much easier to suggest raising productivity than to
actually do so. The last suggestion is to increase the number of judges and strengthen the legal
system, and improve governance. However, while a seemingly simple suggestion, this process is
likely to wind up politically quite difficult.
19. The Productivity Watch
According to former Federal Reserve chairman Alan Greenspan, IT investments in the 1990s
boosted productivity, which boosted corporate profits, which led to more IT investments, and
so on, leading to a nirvana of high growth.
Source: Fortune, September 4, 2006
Which of the growth theories that you’ve studied in this chapter best corresponds to the
explanation given by Mr. Greenspan?
Mr. Greenspan is describing the new growth theory. According to this theory, economic growth
will persist indefinitely because of the perpetual pursuit of profit.
20. Is faster economic growth always a good thing? Argue the case for faster growth and the case
for slower growth. Then reach a conclusion on whether growth should be increased or slowed.
More rapid economic growth brings increased consumption possibilities in the future, which is the
benefit from economic growth. Economic growth has costs: Decreased current consumption and
the possibility of increased resource depletion and environmental damage. (Of course, the
technological change that results from economic growth might allow for less resource depletion
and less environmental damage.) Whether economic growth should be increased or decreased
depends on the benefits of more rapid growth relative to the costs of more rapid growth.
21. Why Canada’s Industry Leaders Need to Embrace the Technology Mindset
We are at a tipping point where technology— from software to hardware and everything in between—is
weaving its way into all that we do and is about to touch every industry. Every day, we are reminded how
quickly things are changing from connected cars, to wearable devices, to manufacturing. Just look at the rapid
advance in China’s economy and standard of living driven in large part by an innovative spirit unleashed in
the late 1990s.

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ECONOMIC GROWTH 89

Source: Financial Post, July 11, 2014


Explain which growth theory best describes the news clip.
The new growth theory stresses the role of innovation and the birth of new firms and the death of
old ones. The new growth theory best describes the article because the article describes new
products, such as connected cars and wearable devices. If these novel products are successful, then
new firms that produce them will be born and old firms that produce outdated products will die.
The news clip also describes new technology, and says that the rapid advance in China's economy
and China's standard of living comes from innovation. Further innovation will lead to profit and
even more further innovation.
22. What is the fundamental fact that drives the new growth theory perpetual motion machine and
keeps it in motion?
The fundamental fact that drives the perpetual motion machine is that our wants always exceed
our ability to satisfy them. As firms innovate new ways to satisfy these wants and our standard of
living grows, so too do our wants for an even higher standard of living.
23. Describe the components of the new growth theory perpetual motion machine and explain the
role played by incentives in keeping the machine in motion.
Major components of the new growth theory are people’s insatiable wants and firms’ pursuit of
profit. Because people’s wants always exceed what they have, firms, in search of profit, have the
incentive to innovate new production techniques and create new products to satisfy these wants.
As firms innovate new and better ways to produce new and better products, old firms and old jobs
are destroyed while new firms and new jobs are created. The new jobs are more productive than
the old ones, so they pay more than the old jobs, which gives people the incentive to take the new
jobs. Along with the higher pay, the more productive techniques allow more leisure. The increased
leisure and better products bring a higher standard of living. But people’s wants remain insatiable,
so they want a still higher standard of living, which continues to give firms the incentive to
continue to innovate.
24. Why and how does new growth theory imply that technological change, even robots and
artificial intelligence, will create as many jobs as it will destroy?
The creation new technology, including robots and artificial intelligence, is the result of people’s
knowledge capital increasing. This sort of capital is not subject to diminishing returns, so the
return from still more additional knowledge capital is still high. That means there will be more
technological breakthroughs to satisfy people’s insatiable wants and hence more jobs producing
these products, including the production of more robots and more artificial intelligence.

Economics in the News


22. After you have studied Economics in the News on pp. 156–157 (564–565 in Economics),
answer the following questions.
a. How do the real GDP growth rates of Canada and the United States compare since 2006?
The growth rate of real GDP has been higher in Canada than in the United States.
b. How do the growth rates of real GDP per person in Canada and the United States compare
since 2006?
The growth rate of real GDP per person has been higher in the United States than in Canada.
c. How do we measure labor productivity?
Labor productivity equals GDP per hour of work, so economists measure labor productivity by
dividing real GDP by aggregate labor hours.

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d. Why might work hours per person have decreased in both the United States and Canada, and
why might the U.S. decrease be greater than the Canadian decrease?
Recently the percentage of workers who work part-time has increased in both the United States
and Canada. The increase in the fraction of workers who are part time decreases the average work
hours per person. This decrease has been larger in the United States because the percentage of U.S.
workers who work part time has increased by more than in Canada.
e. What is the source of the United States’ faster productivity growth and what must Canada do
to replicate it?
The faster productivity growth in the United States is the result of U.S. adoption of more
productive technologies at a faster clip than Canada. Canada needs to increase the speed with
which it adopts better technologies. Canada might implement policies to increase saving, which
can be used to finance the acquisition and implementation of the new technologies.

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