A rapid increase in the number of workers,other things the same,is likely in the short term to
A)raise real GDP per person,but decrease real GDP.
B)decrease both real GDP and real GDP per person.
C)raise both real GDP and real GDP per person.
D)raise real GDP,but decrease real GDP per person.

Question

Quizplus · Accepted Answer

In the short term, a rapid increase in the number of workers is likely to increase real GDP due to the increase in labor input. However, since the increase in output is not matched by an increase in capital or technology, there will be diminishing returns to labor and therefore a decrease in real GDP per person.

A Rapid Increase in the Number of Workers,other Things the Same,is