If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP
A) is $20.
B) is $500.
C) is $5,000.
D) cannot be calculated.

Question

Quizplus · Accepted Answer

Real GDP is calculated as the product of the total worker-hours and labor productivity. Therefore, real GDP = 100 worker-hours x $5 output per worker-hour = $500.

If the Number of Worker-Hours in an Economy Is 100