Ceteris paribus,rising employment rates imply

Question

Quizplus · Accepted Answer

Rising employment rates indicate that more people are working, which increases the overall output of the economy. This leads to a higher per capita GDP because the GDP is divided among a larger number of people who are working. Therefore, B is the correct answer. A is incorrect because employment rates and per capita GDP have an inverse relationship. C is partially correct but not the best choice because rising employment rates do not necessarily imply higher labor force participation rates.

Ceteris Paribus,rising Employment Rates Imply