If the working-age population in an economy shrinks, real GDP can still grow if
A)work hours per week decreases, to spread work among more workers.
B)labor productivity increases rapidly enough.
C)consumption by households increases rapidly.
D)spending by firms and the government increases.

Question

Quizplus · Accepted Answer

If labor productivity increases rapidly enough, it can offset the effects of a shrinking working-age population, allowing real GDP to grow despite fewer workers.

If the Working-Age Population in an Economy Shrinks, Real GDP