The table below shows the quantity of labor (measured in hours) and the productivity of labor (measured in real GDP per hour) in a hypothetical economy in three different years. Refer to the above table. Between Year 2 and Year 3, real GDP increased by:

Question

The table below shows the quantity of labor (measured in hours) and the productivity of labor (measured in real GDP per hour) in a hypothetical economy in three different years.  Refer to the above table. Between Year 2 and Year 3, real GDP increased by:

Quizplus · Accepted Answer

To calculate the percentage increase in real GDP between Year 2 and Year 3, we need to compare the real GDP in Year 3 (which is $31,360) with the real GDP in Year 2 (which is $28,760). The percentage increase can be calculated using the formula: 
percentage increase = (new value - old value)/old value x 100%
Using this formula, we get:
percentage increase = (31,360 - 28,760)/28,760 x 100% = 9.03% (rounded to 10%)
Therefore, the correct answer is C) 10 percent.

The Table Below Shows the Quantity of Labor (Measured in Hours)