Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2. We could conclude that this economy's

Name: Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2. We could conclude that this economy's
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

If both labor productivity and total worker-hours grew by 4 percent, the real GDP would increase by 8 percent, indicating an outward shift in the production possibilities curve.

Suppose That an Economy's Labor Productivity and Total Worker-Hours Each