Asked by Michelle Martin on May 14, 2024

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Over the long run,real earnings per worker can increase only at about the same rate as the economy's rate of growth of:

A) total output.
B) stock of capital.
C) output per worker.
D) international trade.

Economy's Growth

The increase in the market value of the goods and services produced by an economy over time, typically measured as the percentage increase in real gross domestic product (GDP).

Total Output

The complete quantity of goods or services produced by a firm or within an economy during a given period.

  • Grasp the relationship between real earnings growth and the economy’s output growth.
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JR
Jordan RegenbogenMay 19, 2024
Final Answer :
C
Explanation :
Real earnings per worker are directly linked to output per worker, and the economy's rate of growth is largely determined by growth in output per worker. Therefore, real earnings per worker can increase only at about the same rate as the economy's rate of growth of output per worker. Growth in the stock of capital or international trade may have an impact on the rate of growth of output, but ultimately it is output per worker that drives real earnings.