GDP can be represented by the equation: GDP = L x [E/L] x [GDP/E] where L is the total supply of labour and E is the level of employment. In this equation, the term [GDP/E] represents
A)the ratio of the population unemployed.
B)the productivity of labour.
C)one minus the unemployment rate.
D)output per unit of capital.
E)the unemployment rate.

Question

Quizplus · Accepted Answer

[GDP/E] represents the productivity of labour, which measures how much output is produced per hour or per employed worker.

GDP Can Be Represented by the Equation: GDP = L