In 2013. approximately 58% of the adult population (245 million) was employed, t

Question

In 2013. approximately 58% of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession level of 62% percent A) how many people would be working? B) by how much would output increase if per worker GDP is $100,000. In 2013. approximately 58% of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession level of 62% percent A) how many people would be working? B) by how much would output increase if per worker GDP is $100,000. A) how many people would be working? B) by how much would output increase if per worker GDP is $100,000.

Explanation / Answer

a) when 58% of the population is employed the number of people employed is 245 million.Thus total population of a country = 245 * 100/58 .

62% of the total population = 245 * 100/58 * 62/100

= 262 million.

Thus if employment rate increases to 62% number of people employed increases to 262 million.

b)GDP per worker is equal to $1,00,000.Therefore GDP for entire 245 million population would be 245 million lac dollar.When employed population increases to 262 million .GDP increases to 262 million lac dollars.Thus 262 - 245 = 10 + 7 = 17 million lac dollars is the increase in GDP.

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