The following table shows real GDP per hour of work in four imaginary countries in the years

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The following table shows real GDP per hour of work in four imaginary countries in the years 2004 and 2014. By what percentage did labor productivity grow in each country? Is it true that productivity growth was highest where the initial level of productivity was the lowest? For which countries?


Output per Hour


2004

2014

 Country A 

$40

$48

Country B 

25

35

Country C 

2

3

Country D 

0.50 

0.60

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Economics Principles and Policy

ISBN: 978-1305280595

13th edition

Authors: William Baumol, Alan Blinder

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