Question

We use terms like L/pop, Y/L, and Y/pop extensively in the course. Say that you're looking at data from a rich country much like the U.S. and we converted the values into U.S. dollars. Which of the following is the least likely to be seen? Group of answer choices1. Y/pop = $50,000 2. Y/L = $150,000 3. L/pop = .10

Answer 1

The correct option is "C," L/pop = .10.

Step-by-step explanation:

The least likely to be seen is L/pop = .10. because the under-listed computations show the two most important parameters of measuring the par Capita Income of GDP of a country such as USA.

Productivity growth is the main source of growth in per capita GDP

Given that : Real GDP = Y, Number of Workers = L, Population = POP

Y =(Y/L)L => % change Y = % change Y/L + % change L

US 1960 to 2007 3.3% = 1.6% + 1.7%

Y/POP = (Y/L)(L/POP) => % change Y/POP = %change Y/L + %change L/POP

US 1960 to 2007 2.2% = 1.6% + 0.6%