Industrial production
a. Economists often use the expression “rate of growth” in relative rather than absolute terms. For example, let u = ƒ(t) be the number of people in the labor force at time t in a given industry. (We treat this function as though it were differentiable even though it is an integer-valued step function.)
Let y = g(t) be the average production per person in the labor force at time t. The total production is then y = uv. If the labor force is growing at the rate of 4% per year (dv/dt = 0.04v) and the production per worker is growing at the rate of 5% per year find the rate of growth of the total production, y.
b. Suppose that the labor force in part (a) is decreasing at the rate of 2% per year while the production per person is increasing at the rate of 3% per year. Is the total production increasing, or is it decreasing, and at what rate?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.