GDP Equals Hours of Work Multiplied by Output Per Hour

question 192

Multiple Choice

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.

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Definitions:

Rational Consumer

An economic concept where consumers aim to maximize their utility or satisfaction from their available resources.

Demand for Good

The quantity of a particular good or service that consumers are willing and able to purchase at various prices during a specified time period.

Square Feet

A unit of area measurement equivalent to the area of a square with sides of one foot in length.

Quasilinear Preferences

Preferences where utility is linear in one argument, usually money, allowing for easy analysis of changes in wealth while other goods are evaluated non-linearly.