Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that
A) real GDP per capita must be $200,000.
B) the price-level index must be less than 100.
C) labor productivity must be $0.50.
D) nominal GDP must be between $10,000 and $20,000.

Question

Quizplus · Accepted Answer

Labor productivity is calculated by dividing real GDP by worker-hours, so in this case, labor productivity is $10,000/20,000 = $0.50. The other choices are not necessarily true based on the information given.

Suppose Total Output (Real GDP) Is $10,000 and Worker-Hours Are