Employing an additional 1 billion hours of labor increases real GDP by $12 billion.Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion.Hence we can conclude from this information that as employment increases,real GDP
A) increases at an increasing rate.
B) decreases at an increasing rate.
C) decreases at a decreasing rate.
D) increases at a decreasing rate.
E) falls from $12 billion to $11 billion as more workers are hired.
Correct Answer:
Verified
Q46: As additional units of labor hours are
Q47: Q48: _ in the United States _ in Q49: Q50: Diminishing returns,so that each additional hour of Q52: Q53: As the quantity of labor employed increases,the Q54: As more labor is hired,moving along the Q55: In 2011,real GDP in the United States Q56: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
![]()
![]()
![]()