Ceteris paribus,rising employment rates imply
A)Falling per capita GDP.
B)Rising per capita GDP.
C)Higher labor force participation rates.
D)Lower labor force participation rates.

Question

Quizplus · Accepted Answer

Rising employment rates mean more people are working, which increases the overall output of the economy. This leads to a rise in per capita GDP, indicating higher average economic well-being. Ceteris paribus means that we are holding other variables constant, so we can assume there is no significant change in labor force participation rates. Therefore, the correct answer is B.

Ceteris Paribus,rising Employment Rates Imply