Women entered the labour force in large numbers in the 20^th century and increased the economy's GDP.This change A)created inflationary gaps. B)created recessionary gaps. C)raised potential output. D)was only possible in an economy operating above normal rates of utilization. E)was only possible in an economy operating below normal rates of utilization.

Question

Quizplus · Accepted Answer

Women entering the labour force in large numbers raised potential output, as there were more workers contributing to the economy. This increased productivity and economic growth. Inflationary or recessionary gaps refer to gaps between actual and potential output, and are caused by changes in aggregate demand. The statement about normal rates of utilization is irrelevant.

Women Entered the Labour Force in Large Numbers in the 20th

Women Entered the Labour Force in Large Numbers in the 20^th