Analyze an economy with an employed labor force

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Reference no: EM13887113

Suppose you are asked to analyze an economy with an employed labor force of 100 million workers, a capital stock of 25,000 billion USD and total factor productivity equal to 5. You also estimate the APF for the country to be: .

a) What is the value of RGDP?

b) If the employed labor force increases by 10%, what is the value of RGDP now?

c) Sketch a graph of your results with employment on the X axis.

d) Now suppose that total factor productivity doubles. What is the value of RGDP?

e) Sketch a graph of your results with employment on the X axis.

Reference no: EM13887113

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