What Happens to the Real Wage Rate and Potential GDP

question 111

Essay

What happens to the real wage rate and potential GDP if population increases?

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Definitions:

Responsibility Centre

A business unit or department for which its manager is accountable for certain activities and financial performance.

Investment Centre

A business unit or division that is responsible for generating returns on the assets allocated to it, with managers typically evaluated on profitability and the efficiency of asset utilization.

Suboptimal Decisions

Choices or decisions made that are not the best possible ones, often resulting in less efficient or effective outcomes than could have been achieved.

Decentralisation

The distribution of decision-making power and operational responsibilities away from a central authority to lower levels in an organization.