If economic output is increased by increasing the number of people working in the economy, then
A)both GDP per capita and labor productivity will increase.
B)both GDP per capita and labor productivity will decrease.
C)GDP per capita will increase.
D)Labor productivity will increase.

Question

Quizplus · Accepted Answer

Increasing the number of people working in the economy increases total GDP, but GDP per capita may increase if the additional workers contribute more than the average output per person. Labor productivity, which is output per worker, may not necessarily increase just by adding more workers.

If Economic Output Is Increased by Increasing the Number of People