Employment Will Remain Constant as a Result of an Increase

question 9

Multiple Choice

Employment will remain constant as a result of an increase in productivity when which of the following occurs?

• A) Productivity growth exceeds output growth.
• B) Productivity growth is equal to output growth.
• C) Output growth exceeds productivity growth.
• D) The AS curve shifts downward.
• E) The AD curve shifts to the right.

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Definitions:

Final Goods

Products that are ready for consumption by individuals or businesses, without further transformation or being used in producing other goods.

Real GDP

The total value of all goods and services produced in a country in a year, adjusted for inflation or deflation.

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a comparison point.

GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders.