00:01
All right, so this question is discussing whether quantity of labor increases or decreases, and in which sector between the non -farm sector and the manufacturing sector was the quantity of labor larger.
00:16
And so, in order to solve this, we need to realize a few relationships.
00:22
So while we are given the output, we're given o, and we are given labor productivity.
00:30
What we also need to figure out from these givens is how we can figure out the quantity of labor or cube.
00:40
And so we know that output is equal to labor productivity multiplied by the quantity of labor you have.
00:48
And so knowing this, we could then solve for our quantity of labor or hypothetically the magnitude of change of our quantity of labor that is determined by what we are given.
01:04
So in the non -farm sector, output fell 5 .5%.
01:11
And labor productivity increased 1 .9%.
01:17
And so we can figure out how much quantity of the labor changed by substituting in numbers for output and labor productivity.
01:28
And while these numbers might not be a realistic view of the amount of labor, or output or even labor productivity inside of these sections, it gives us a sense and a clear view of the magnitude of change of all of these things happening.
01:47
So let's just call output 100, hypothetically, and hypothetically labor output is, labor productivity is 100, right? and that means that our quantity of labor in this situation would just be one.
02:03
So now we can apply these changes of output and labor productivity.
02:10
So if output goes down 5 .5 % becomes to 94 .5, labor productivity goes up 1 .9%, because 101 .9...