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What is the current labor participation rate

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Reference no: EM131861752

Consider the following: A country has a population of 125 million. Of this number, 75 million are able to work. Labor force is 62 million people. Unemployment rate is 8%. Assume that the current GDP is $250 billion. CPI level is 122. Answer the following:

a) What is the current labor participation rate?

b) What are real and nominal per capita GDP values?

c) What are the real and nominal productivity per worker values?

d) If participation rate falls to %62, while GDP contracts to $225 billion and CPI rises to 130, what happens to real and nominal output per person and productivity per worker? Assume that unemployment rate does not change.

Reference no: EM131861752

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