A nation's standard of living, as measured by real GDP per person, increases:

A. only if the share of population employed increases.
B. if either average labor productivity and/or the share of population employed increase.
C. only if both average labor productivity and the share of population employed increase.
D. only if average labor productivity increases.


Answer: B

Economics

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The above figure shows Katie's consumption possibilities. The relative price of a restaurant meal is

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