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

Question

Quizplus · Accepted Answer

If a larger proportion of a constant population becomes employed, and average labor productivity is also constant, then total output must increase as more people are actively producing output. With more output and a constant population, output per person must also be increasing.

In Econland Population and Average Labor Productivity Are Constant