Question

Assume that an economy has 1,000 workers, each working 2,500 hours per year. if the average real output per worker-hour is $20, then total output, or real gdp, will be

Answer 1

$50,000,000

Explanation:

You want to know the total output (real gdp) of 1000 workers, each working 2500 hours producing real output of $20 per hour.

GDP

The output, called "gross domestic product" or GDP, is the total output of all workers for the hours they work:

(1000 worker) × (2500 hours/worker) × ($20/hour) = $50,000,000

The GDP will be $50,000,000 or 50 million dollars.