Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 8

Suppose that in an economy 100 worker-hours produce 160 units of output in year 1. In years 2 and 3 worker-hours are 120 and 130 and units of output are 216 and 260, respectively. Using year 2 as the base year, calculate (a) the productivity index for all three years and (b) the rates of productivity growth.