An increase in labor productivity necessarily means an increase in real GDP per capita if:
a. real GDP increases
b. the employment growth rate is greater than the population growth rate.
c. the employment growth rate is less than the population growth rate.
d. the size of the labor force remains constant.
e. real GDP increases more rapidly than nominal GDP.
b
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One of the major political developments of the past several decades is the growing size and economic/monetary integration of the European Union. What effect do you think this will have on international trade between countries?
What will be an ideal response?
An economy can produce either of these two combinations of goods X and Y: 1,000X and 0Y or 400Y and 0X. Furthermore, the opportunity cost between the two goods is always constant. Which of the following combinations of the two goods, X and Y, is it possible for the economy to produce?
A) 700 units of X and 280 units of Y B) 600 units of X and 250 units of Y C) 400 units of X and 150 units of Y D) 100 units of X and 600 units of Y E) 300 units of X and 280 units of Y