Women entered the labour force in large numbers in the 20^thcentury and increased the economy's GDP. This change A)raised potential output. B)was only possible in an economy operating above normal rates of utilization. C)created inflationary gaps. D)created recessionary gaps. E)was only possible in an economy operating below normal rates of utilization.

Question

Quizplus · Accepted Answer

Women entering the labor force in large numbers and increasing the economy's GDP would raise potential output, as it adds to the overall productivity of the economy. The other options of being only possible in an economy operating above or below normal rates of utilization, or creating inflationary or recessionary gaps, are not necessarily applicable as they are dependent on various other factors such as aggregate demand and supply, technology, and government policies.

Women Entered the Labour Force in Large Numbers in the 20th

Women Entered the Labour Force in Large Numbers in the 20^th