Question

Suppose that work hours in new zombie are 200 in year 1 and productivity is $8 per hour worked. what is new zombie's real gdp? if work hours increase to 210 in year 2 and productivity rises to $10 per hour, what is new zombie's rate of economic growth?

Answer 1

Given that work hours in new zombie are 200 in year 1 and productivity is $8 per hour worked.

The new zombie's real gdp in year 1 is given by 200 x $8 = $1,600

If work hours increase to 210 in year 2 and productivity rises to $10 per hour.

The new zombie's real gdp in year 2 is given by 210 x $10 = $2,100

The new zombie's rate of economic growth is given by

$\frac{\ 2,100-\ 1,600}{\ 1,600} \times 100\%= \frac{\ 500}{\ 1,600} \times100\%=31.25\%$