In Econland population and average labor productivity are constant. If a larger proportion of the population enters retirement, then total output will ________ and output per person will ________.

Question

Quizplus · Accepted Answer

If a larger proportion of a constant population enters retirement, and average labor productivity is also constant, then total output must decrease, as fewer people are actively producing output. With less output and a constant population, output per person must also be decreasing.

In Econland Population and Average Labor Productivity Are Constant