Question

Suppose that work hours in new zombie are 200 in year 1 and productivity is $18 per hour worked. instructions: in part a, enter your answer as a whole number. in part b, round your answer to 2 decimal places.

a. what is new zombie's real gdp

Answer 1

GDP1 = 200*18 = $3600

We assume that the work hours increase to 210 and the productivity falls to 8.
GDP2 - 210*8= $1680

Growth Rate = (GDP2 - GDP1)/GDP1 * 100 = 1000/120000 * 100 = 0.83%
Growth Rate per Capita = (GDP2/p2 - GDP1/p1) / (GDP1/p1) * 100 = -0.17%

The negativity growth rate per capita make some sense, since the population rise to 1% while the GDP only rise by .83%. So that we get a negative number.

So the new zombie's rate of economic growth is equal to -53.33% ((1680 - 3600) /3600) * 100