If this economy has 1,000 workers in total, what is total GDP at time t, i.e., what is
𝑌
𝑡
?

Round your answer to the nearest integer.

Hint: Take advantage of the fact that
𝐾
𝑡
=
𝑘
𝑡
×
𝐿
𝑡
and/or
𝑌
𝑡
=
𝑦
𝑡
×
𝐿
𝑡
.

Question

If this economy has 1,000 workers in total, what is total GDP at time t, i.e., what is 
𝑌
𝑡
?

Round your answer to the nearest integer.

Hint: Take advantage of the fact that 
𝐾
𝑡
=
𝑘
𝑡
×
𝐿
𝑡
 and/or 
𝑌
𝑡
=
𝑦
𝑡
×
𝐿
𝑡
.

BlackTom AI · Accepted Answer

We start by restating what we know from the prompt and then lay out the steps to compute total GDP, noting any missing information.

- The question asks for total GDP at time t, Y_t, given there are 1,000 workers in total (L_t = 1000). It also hints that Y_t can be expressed as Y_t = y_t × L_t and K_t = k_t × L_t, i.e., GDP is the per-worker GDP times the number of workers, and similarly capital is per-worker capital times workers.
- The key relationship to use is Y_t = y_t × L_t. This means that to find Y_t, you need the per-worker output y_t (the output produced by each worker on average).
- Similarly, if we needed capital, K_t would be K_t = k_t × L_t, requiring the per-worker capital k_t. But the prompt does not provide y_t or k_t values, only L_t = 1000.

Now, considering the provided numeric answer (25768) and the general formula, here is how the calculation would proceed if you had the per-worker value:
- If y_t is given, compute Y_t = y_t × L_t. With L_t = 1000, Y_t = y_t × 1000.
- To match a final value of 25,768, you would need y_t = 25,768 / 1,000 = 25.768 per worker.

What this implies about the given answer:
- If the per-worker GDP y_t is 25.768, then Y_t = 25.768 × 1000 = 25,768, which rounds to 25,768 (nearest integer).
- If the per-worker value y_t differs, Y_t would scale accordingly by the same factor, since L_t is fixed at 1,000.

Important caveat:
- The prompt does not supply the numerical value of y_t (per-worker GDP) or k_t (per-worker capital). Without y_t (or additional data linking to Y_t), Y_t cannot be determined uniquely from the information given. Any specific numerical result (such as 25,768) rests on the assumption that y_t equals 25.768.

If you are given, or can retrieve, y_t (per-worker GDP) or data to compute it (for example from a production function or from historical data), plug into Y_t = y_t × 1,000 and round to the nearest integer to obtain the final GDP value.

FA25 ECON 302 002 Midterm Exam #2 (Chapters 5-6): Sample Questions

If this economy has 1,000 workers in total, what is total GDP at time t, i.e., what is 𝑌 𝑡 ? Round your answer to the nearest integer. Hint: Take advantage of the fact that 𝐾 𝑡 = 𝑘 𝑡 × 𝐿 𝑡 and/or 𝑌 𝑡 = 𝑦 𝑡 × 𝐿 𝑡 .

View Explanation

Log in for full answers

Similar Questions

Using the following information calculate the GDP for this economy: Consumption of $5 000 Investment of $10 000 Government purchases of $3 000 Government transfer payments of $1 000 Exports of $6 000 Imports of $5 000

If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.

If this economy has 1,200 workers in total, what is total GDP at time t, i.e., what is 𝑌 𝑡 ? Round your answer to the nearest integer. Hint: Take advantage of the fact that 𝐾 𝑡 = 𝑘 𝑡 × 𝐿 𝑡 and/or 𝑌 𝑡 = 𝑦 𝑡 × 𝐿 𝑡 .

To avoid double counting in the calculation of GDP, which types of goods are typically excluded from the calculation?

Suppose C = $6T, I = $2T, G = $3T, EX = $1T, IM = $2T. GDP is:

In a small economy, gross investment in 2018 is $2500, consumption spending is $6000, net investment is $200, government spending is $1500, exports are $2000 and imports are $1000. What is GDP for this economy in 2018?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler