Real GDP in any year is equal to:
A)the quantity of labour divided by resource outputs.
B)labour productivity multiplied by the quality of labour.
C)worker-hours divided by labour productivity.
D)worker-hours multiplied by labour productivity.

Question

Quizplus · Accepted Answer

Real GDP measures the total production of goods and services in an economy. It is calculated as the product of worker-hours (the total number of hours worked by all employed individuals) and labour productivity (the quantity of goods and services produced per hour of work). Therefore, the formula for real GDP is worker-hours multiplied by labour productivity, which is option D.

Real GDP in Any Year Is Equal To