To calculate the average labor productivity for each country in 1980 and 2010, we'll use the formula:

$\text{Average Labor Productivity} = \frac{\text{GDP per person}}{\text{Ratio of employment to population}}$

This gives us the output per worker in each period. Let’s calculate the values for both Germany and Japan in the years 1980 and 2010.

Germany:

1. 1980: $\text{Average Labor Productivity} = \frac{14,114}{0.33} = 42,769$
2. 2010: $\text{Average Labor Productivity} = \frac{20,661}{0.52} = 39,735$

Japan:

1. 1980: $\text{Average Labor Productivity} = \frac{13,428}{0.48} = 27,975$
2. 2010: $\text{Average Labor Productivity} = \frac{21,935}{0.49} = 44,765$

Summary:

• Germany:
  • 1980: $42,769
  • 2010: $39,735
• Japan:
  • 1980: $27,975
  • 2010: $44,765

Interpretation of GDP per person increase:

1. For Germany:

   • Answer: The increase in GDP per person occurred mostly because of an increase in employment relative to population. While the ratio of employment to population increased significantly (from 0.33 to 0.52), average labor productivity slightly declined.

2. For Japan:

   • Answer: The increase in GDP per person occurred mostly because of an increase in labor productivity. While the employment ratio remained relatively stable, labor productivity showed a strong increase from 1980 to 2010.

Would you like more details or have any questions?
Here are 5 questions to deepen your understanding:

1. How is labor productivity related to GDP growth?
2. What factors could cause labor productivity to decline even with an increase in employment?
3. How can changes in the ratio of employment to population affect a country's GDP per person?
4. Why did Japan's labor productivity grow more than Germany's between 1980 and 2010?
5. How might technological advancements affect labor productivity?

Tip: Labor productivity can improve through innovations, education, or better technology, even if the employment-to-population ratio stays the same.