If output grew 5.5 percent and labor productivity grew 2 percent during a decade, the number of hours worked grew by ______over the year.

Question

Quizplus · Accepted Answer

We can use the formula for calculating output growth: Output growth = labor productivity growth + hours worked growth. 
Given that output growth was 5.5 percent and labor productivity growth was 2 percent, we can solve for hours worked growth:

5.5% = 2% + hours worked growth

Hours worked growth = 5.5% - 2% 
Hours worked growth = 3.5%

Therefore, the number of hours worked grew by 3.5 percent over the decade. The best choice is (A).

If Output Grew 5