#2 Chapter 17, Microeconomics

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Suppose that in an economy 100 worker-hours produce 160 units of output in year 1. In years 2 and 3 worker hours are 120 and 130 and units of output are 216 and 260, respectively. Using year two as a base year, calculate (a) the productivity index for all three years and (b) the rates of productivity growth.

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