If there was both an increase in technology and an increase in labor force participation, real GDP growth would ____ and real GDP growth per capita would ____.
A)increase: increase
B)be indeterminate; be indeterminate
C)be indeterminate; decrease
D)increase; be indeterminate

Question

If there was both an increase in technology and an increase in labor force participation, real GDP growth would ____ and real GDP growth per capita would ____.
A)​increase: increase
B)​be indeterminate; be indeterminate
C)​be indeterminate; decrease
D)​increase; be indeterminate

Quizplus · Accepted Answer

An increase in technology would increase productivity and efficiency in the labor force, while an increase in labor force participation would increase the total output of the economy. Therefore, real GDP growth would increase, and real GDP growth per capita would also increase because output per person would increase with the help of technology.

If There Was Both an Increase in Technology and an Increase