If per capita GDP growth exceeds labor productivity growth,
A)human capital must be increasing
B)the labor-capital ratio must be decreasing
C)employment must be growing faster than the population
D)the data are incorrect; this could not occur
E)physical capital must be increasing

Question

Quizplus · Accepted Answer

If per capita GDP growth exceeds labor productivity growth, it implies that employment is growing faster than the population, as more people are working relative to the total population, contributing to higher GDP per capita.

If Per Capita GDP Growth Exceeds Labor Productivity Growth