Last year, in a nation far to the South, real GDP was $90 million and 900,000 workers were employed. This year real GDP is $100 million, 950,000 workers are employed, and the number of hours each worker works per year did not change. Hence, labor productivity

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Labor productivity is calculated as real GDP divided by the number of workers. Last year, it was $90 million / 900,000 workers = $100 per worker. This year, it is $100 million / 950,000 workers = approximately $105.26 per worker. Therefore, labor productivity has increased.

Last Year, in a Nation Far to the South, Real