Changes in productivity can be analyzed by looking at how GDP per employed worker changes over time or how GDP per hour worked changes over time.Why might one measure be more preferable than the other?
A)GDP per hour worked is preferable because it eliminates the need to adjust for variations in productivity between employed workers.
B)GDP per employed worker is more accurate because the data available on the number of employed workers is more accurate than the data available on the number of hours worked.
C)GDP per hour worked is more accurate because the average number of hours worked per employed worker has changed over time.
D)GDP per employed worker is preferable because the number of employed workers has risen significantly over time.
E)Both measures are equally good.

Question

Quizplus · Accepted Answer

GDP per hour worked is more accurate because it takes into account changes in the average number of hours worked per employed worker. This allows for a more accurate analysis of changes in productivity over time. GDP per employed worker can be affected by changes in the number of workers, which may not accurately reflect changes in productivity.

Changes in Productivity Can Be Analyzed by Looking at How