If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Name: If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.
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Quizplus · Accepted Answer

Real GDP is calculated by multiplying the total work-hours by labor productivity. In this case, 800,000 work-hours multiplied by $16/hour equals $12,800,000, not $50,000.

If an Economy Has 800,000 Work-Hours Employed, and Its Labor