An Increase in Labor Productivity Necessarily Means an Increase in Real

question 110

Multiple Choice

An increase in labor productivity necessarily means an increase in real GDP per capita if:

• A)real GDP increases.
• B)the employment growth rate is greater than the population growth rate.
• C)the employment growth rate is less than the population growth rate.
• D)the size of the labor force remains constant.
• E)real GDP increases more rapidly than nominal GDP.

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Definitions:

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus accumulated depreciation.

Bond Liability

The amount owed by an entity to bondholders, including the principal and any unpaid interest.

Par

The nominal or face value of a bond, share, or other financial instrument, typically the value at which it is issued.

Bond Interest

The amount of interest paid by bond issuers to bondholders, typically expressed as an annual percentage of the bond's face value.