If a country passes a labour law limiting the number of hours of work per week, ceteris paribus, GDP would ________ and leisure would ________.

Question

Quizplus · Accepted Answer

Limiting the number of hours of work per week means that workers will have less time to produce goods and services, which will result in a decrease in GDP. However, as workers have more leisure time, the leisure component of the economy will increase.

If a Country Passes a Labour Law Limiting the Number