Suppose labor productivity is $110,000 per worker in 2015. Calculate the value of labor productivity in 2035 (20 years later) if:

Instructions: Enter your responses rounded to the closest $100.

a. Productivity continues to grow by 2.6 percent per year.

U.S labor productivity in 2035 would be $  per worker.

b. Productivity falls to 2.0 percent per year (the average productivity growth between 1970 and 2009).

U.S. labor productivity in 2035 would be $  per worker.

c. How much lager would labor productivity per worker be in 2035 with the higher growth rate compared to the lower growth rate.

Instructions: Enter your responses rounded to two decimal places.

  times higher.

Answer rating: 100% (QA)

a Using the formula for compound growth Labor productivity in 2035 110000 ... View the full answer