Which of the following best defines gross job destruction?
A) the sum of job losses across all firms, either by firms reducing their employment or going out of business, in a given year
B) the number of jobs created by new firms less jobs lost in established firms in a given year
C) the number of job losses due to firms reducing their employment in a given year
D) the number of job losses due to firms going out of business in a given year

Question

Quizplus · Accepted Answer

Gross job destruction refers to the total number of jobs lost across all firms, either due to firms reducing their employment or going out of business, in a given year. Option A correctly captures this definition. Options B, C, and D only capture specific subsets of job losses and do not reflect the total magnitude of job destruction in an economy.

Which of the Following Best Defines Gross Job Destruction