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.