What will a rapid increase in the number of workers, other things the same, likely do in the short term?
A) raise real GDP per person but decrease real GDP
B) decrease both real GDP and real GDP per person
C) raise both real GDP and real GDP per person
D) raise real GDP but decrease real GDP per person

Question

Quizplus · Accepted Answer

In the short term, a rapid increase in the number of workers would increase the total output of goods and services produced in the economy (real GDP). However, since the increase in workers would likely not be accompanied by a proportional increase in the economy's capital stock or technology, the increase in output would be spread over more workers, resulting in a decrease in real GDP per person. Therefore, real GDP would increase while real GDP per person would decrease.

What Will a Rapid Increase in the Number of Workers