What was the productivity growth rate between 2001 and 2002?

Question

This table shows data for a hypothetical economy in 2001 and 2002. Nominal GDP is measured in current dollars and real GDP is measured in 1996 dollars.

2001 2002

Population 800,000 808,000

Number of Hours Worked 1,000,000,000 1,000,000,000

Real GDP $20,000,000,000 $21,000,000,000

Nominal GDP $30,000,000,000 $32,100,000,000

13.6. What was the productivity growth rate between 2001 and 2002?

A. 5%

B. 9%

C. 11%

D. 7%

Answer 1

A. 5%

Since you have fixed worked hours - then just compare real GDP values 21'000'.../20'000'...=1.05=+5%