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Business, 06.08.2021 20:10 JamesLachoneus

Assume that the hypothetical economy of Molpol has 8 workers in year 1, each working 1,500 hours per year (50 weeks at 30 hours per week). The total input of labor is 12,000 hours. Productivity (average real output per hour of work) is $10 per worker. a. What is the real GDP in Molpol?
Suppose work hours rise by 5 percent to 12,600 hours per year and labor productivity rises by 5 percent to $10.5.

b. In year 2, what will be Molpol real GDP?
c. Between year 1 and year 2, what will be the Molpol rate of economic growth?

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