Suppose that growth in labor is 5% while output (real GDP) grew at a rate of 4%, it must be the case that:

Name: Suppose that growth in labor is 5% while output (real GDP) grew at a rate of 4%, it must be the case that:
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Real GDP per capita is calculated as real GDP divided by the population. Since labor grew at 5% and output grew at 4%, it means that the output per worker decreased, implying a decrease in productivity, which leads to a decrease in real GDP per capita.

Suppose That Growth in Labor Is 5% While Output (Real