Real GDP can increase either because the quantity of labor increases or because labor productivity increases. What is the effect on the standard of living if real GDP increases because

a. the quantity of labor increases?
b. labor productivity increases?


a. An increase in real GDP because the quantity of labor increases has no effect on the standard of living.
b. An increase in real GDP because labor productivity increases boosts the nation's standard of living.

Economics

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A) bids are placed privately B) public goods are sold C) bidders know about each other's bids D) free goods are distributed among the general public

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A) the same level of utility as the one on the left. B) the same bundle of goods as the one on the left. C) a higher level of utility than the one on the left. D) a lower level of consumer income than the one on the left.

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