Which of the following will be true if employment grows faster than the population as a whole?
A)Output per capita will increase faster than productivity per worker.
B)The standard of living will increase.
C)Output per capita and productivity per worker will grow at an equal pace.
D)Output per worker and productivity per worker will remain unaffected.
E)Output per capita will increase at a diminishing rate.

Question

Quizplus · Accepted Answer

If employment grows faster than the population as a whole, it means the unemployment rate will decrease. This can lead to increased consumer spending, higher demand, and ultimately higher economic growth. This can lead to an increase in the standard of living for the population as a whole.

Which of the Following Will Be True If Employment Grows