Consider the equation: GDP = L x [E/L] x [GDP/E] where L is the supply of labour and E is the level of employment. In this equation, the term [E/L] represents the
A)capital- utilization rate.
B)number of people employed.
C)the ratio of the population unemployed.
D)productivity of labour.
E)labour employment rate.

Question

Quizplus · Accepted Answer

The term [E/L] represents the labour employment rate, which is the ratio of the level of employment (E) to the supply of labour (L).

Consider the Equation: GDP = L X [E/L] X [GDP/E]