Average labor productivity is defined as
A) per-capital real GDP divided by employment.
B) nominal GDP divided by employment.
C) per-capita nominal GDP divided by employment.
D) real GDP divided by employment.

Question

Quizplus · Accepted Answer

Average labor productivity is defined as the amount of output (real GDP) a worker produces in a given amount of time (usually an hour). Real GDP takes into account changes in prices, making it a better measure of productivity than nominal GDP. Therefore, real GDP divided by employment is the best choice.

Average Labor Productivity Is Defined as