GDP equals hours of work multiplied by output per hour. This can be rewritten as
A. growth rate of potential GDP = growth rate of labor input + growth rate of labor productivity.
B. potential GDP = wages + cost of production.
C. growth rate of real GDP = growth rate of labor input + growth rate of marginal output.
D. growth rate of GDP = growth rate of wages + growth rate of labor productivity.
Answer: A
You might also like to view...
Macroeconomic issues include all of the following EXCEPT:
A. economic growth B. energy reserves C. recessions and expansions D. productivity
In the short run, a federal budget deficit will most likely _____
a. stimulate aggregate supply b. reduce federal debt c. boost economic growth d. reduce national saving e. boost domestic saving
Consider the market for capital equipment. Suppose the value of the marginal product of capital equipment increases. Holding all else constant, the equilibrium quantity of capital equipment will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity of capital equipment.
Explain the popularity of options in the sense of the potential gains and losses they offer.
What will be an ideal response?