For a given labor force, an increase in real GDP implies a decrease in unemployment.

Question

Quizplus · Accepted Answer

An increase in real GDP typically leads to an increase in demand for goods and services, which can lead to an increase in demand for labor. This can result in businesses hiring more workers and thus decreasing unemployment. However, there can be other factors that affect the labor force and employment levels, such as changes in technology, demographics, and government policies, that can complicate the relationship between real GDP and unemployment.

For a Given Labor Force, an Increase in Real GDP