Sustained increases in real GDP per person depend on

Question

Quizplus · Accepted Answer

Sustained increases in real GDP per person depend on increases in labor productivity, meaning the amount of output produced per hour of work. Increasing the quantity of labor (A) or population (B) can temporarily boost output, but not in the long run without corresponding increases in productivity. Increasing average hours (C) can increase output in the short term, but is not sustainable or desirable in the long run. Decreases in labor productivity (E) would lead to a decrease in real GDP per person.

Sustained Increases in Real GDP Per Person Depend on