If per capita GDP growth exceeds labor productivity growth,then:
A)human capital must be increasing.
B)the labor-capital ratio must be decreasing.
C)employment must be growing faster than population.
D)population must be growing faster than employment.
E)physical capital must be increasing.

Question

Quizplus · Accepted Answer

If per capita GDP growth exceeds labor productivity growth, it implies that more output is being produced per person in the economy, not just because each worker is becoming more productive, but because more people are working relative to the size of the population. This means employment is growing at a faster rate than the population, leading to higher per capita GDP even if individual productivity improvements do not account for all the growth.

If Per Capita GDP Growth Exceeds Labor Productivity Growth,then