If the growth rate of employment is positive but labor productivity remains unchanged,which of the following is likely to happen?
A)Real GDP will either decrease or remain constant.
B)Real GDP will decrease.
C)Real GDP will remain constant.
D)Real GDP will either increase or remain constant.
E)Real GDP will increase.

Question

Quizplus · Accepted Answer

The growth in employment will result in an increase in the labor force. As a result, even if labor productivity remains constant, the total output produced by the economy will increase, leading to an increase in real GDP.

If the Growth Rate of Employment Is Positive but Labor