The rate of growth of output per worker in Australia between 1985 and 2009 was approximately equal to which of the following?
A) 2.5%.
B) 0.5%.
C) 5.5%.
D) 1.5%.
E) 6.5%.

Question

Quizplus · Accepted Answer

According to the information given in the question, we need to calculate the average annual growth rate of output per worker in Australia between 1985 and 2009. Using the formula for compound growth rate, we get:

[(Output per worker in 2009 / Output per worker in 1985)^(1/24) - 1] x 100

Plugging in the values given in the table, we get:

[(87,400 / 53,400)^(1/24) - 1] x 100
= (1.01495 - 1) x 100
= 1.495%

Therefore, the answer is D) 1.5%.

The Rate of Growth of Output Per Worker in Australia