Asked by Chelsea Lewis on May 07, 2024
Verified
If the growth rate of employment is positive but labor productivity remains unchanged,which of the following is likely to happen?
A) Real GDP will either decrease or remain constant.
B) Real GDP will decrease.
C) Real GDP will remain constant.
D) Real GDP will either increase or remain constant.
E) Real GDP will increase.
Labor Productivity
A measure of economic performance that calculates the amount of goods and services produced (output) per unit of labor input, reflecting the efficiency of labor use.
Real GDP
Real Gross Domestic Product is the inflation-adjusted value of all goods and services produced by an economy over a specific period, providing a more accurate picture of an economy's size and how it's growing over time.
Employment Growth
The increase in the number of people who are employed in a country or region over a set period.
- Understand the connection between economic expansion, demographic growth, and living standards.
- Recognize the role and importance of productivity in influencing a nation's standard of living.
Verified Answer
TB
Tianna BattlesMay 13, 2024
Final Answer :
E
Explanation :
The growth in employment will result in an increase in the labor force. As a result, even if labor productivity remains constant, the total output produced by the economy will increase, leading to an increase in real GDP.
Learning Objectives
- Understand the connection between economic expansion, demographic growth, and living standards.
- Recognize the role and importance of productivity in influencing a nation's standard of living.