Suppose that output in an economy is 50 units and the number of hours worked in the economy is 25. If the economy enters an expansion, which of the following combinations of output and hours worked would best reflect the expansion?

Question

Quizplus · Accepted Answer

An expansion typically involves an increase in output with a relatively smaller increase in hours worked, reflecting improved productivity. Option D shows an increase in output with a smaller proportional increase in hours worked.

Suppose That Output in an Economy Is 50 Units and the Number