If real GDP is 1200 billion the population is 60 million and

If real GDP is $1,200 billion, the population is 60 million, and aggregate hours are 80 billion, labor productivity is

$5.00 an hour.

$6.67 an hour.

$15.00 an hour.

$20,000.

$150 an hour.

Solution

Labor productivity=total output/total input.

Here total input is the total time that is 80 billion hours.

labor productivity is 1200/80=$15 an hour. The third option is correct.