Question #1: Crammerville has a population of 100 people, where 50% of the population is working. Each worker produces $5,000 worth of output per year. What is the value of the average Standard of Living?
Question #2: What is the value of labor productivity in Question #1?
Question #3: What is the value for Okun’s Gap in % terms if a country has an actual unemployment rate of 5% and a natural unemployment rate of 8%?
Question #4: Labor productivity in a country is decreasing by 2% each year, but the portion of the population who is working is increasing by 5% each year. What is happening to the standard of living each year?