An increase in labor productivity necessarily means an increase in real GDP per capita if _____
A) real GDP increases.
B) the employment growth rate is greater than the population growth rate.
C) the employment growth rate is less than the population growth rate.
D) the size of the labor force increases.
E) real GDP increases more rapidly than nominal GDP.

Question

Quizplus · Accepted Answer

An increase in labor productivity means more output per worker. If the employment growth rate is greater than the population growth rate, more people are working relative to the population, which can lead to an increase in real GDP per capita.

An Increase in Labor Productivity Necessarily Means an Increase in Real