When the population increases with no change in labour productivity, employment ________ and potential GDP ________.

Name: When the population increases with no change in labour productivity, employment ________ and potential GDP ________.
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When the population increases, more people are available to work, leading to an increase in employment. With more workers, the economy can produce more goods and services, thus increasing potential GDP, assuming labor productivity remains constant.

When the Population Increases with No Change in Labour Productivity