In: Economics
In 2016, 59.7 percent of the adult population (253 million) was employed. If the employment rate increased to 62 percent,
Instructions: In part a, round your response to one decimal place. In part b, enter your response as a whole number.
a. How many more people would be working?
______ million
b. By how much would output increase if per worker GDP were $122,000?
$ _____ billion
(a) Number of people starts working is as follows:-
= (62 – 59.7) * 253
= 2.3% * 253
= 5.819
Hence, 5.819 million more people would be working.
(b) Given that the per worker GDP is $1,22,000:-
Increase in level of output = $122,000 * 5.819
= $709.92 Billion
Thus, the output would increase by $709.92 billion