Whenever average output produced per worker during a specific time period decreases,then

Question

Quizplus · Accepted Answer

When the average output produced per worker decreases, it means that labour productivity has decreased. This can have negative effects on the economy, including lower economic growth, lower real wages, and lower standards of living. Therefore, choice C is the correct answer. Leisure time (A) may or may not decrease depending on other factors, and nominal GDP (B) may not necessarily increase in this scenario as it depends on other factors affecting the economy, such as inflation. The standard of living (D) does not go up when labour productivity decreases.

Whenever Average Output Produced Per Worker During a Specific Time