Question

Assume that an economy has 2000 workers, each working 4000 hours per year. If the average real output per worker-hour is $10, then total output or real GDP will be:

Answer 1

$80,000,000

Step-by-step explanation:

If we assume that an economy has 2000 workers, each working 4000 hours per year.

If the average real output per worker-hour is $10, then total output or real GDP will be:

$10 per hour (multiplied by) Total number of hours - 4000 hours (multiplied by) Total number of workers in the economy which is 2000 workers

Therefore total output = 10 x 4000 x 2000 = $80,000,000