A Nation's Real GDP Will Increase by Increasing the Following

question 190

Multiple Choice

A nation's real GDP will increase by increasing the following, except

• A) number of workers.
• B) labor productivity.
• C) technological progress.
• D) average price level.

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Definitions:

Total Compensation

The complete pay package for employees including all forms of money, benefits, services, and in-kind payments.

Direct Payments

Cash transfers from the government to individuals or businesses for various purposes without any requirement for reciprocation.

Real Wages

The buying power of salaries, factoring in inflation, shows the amount of products and services that can be purchased.

Labor Demand

The total quantity of workers that employers want to hire at a given wage rate, reflecting how employment levels vary with changes in wage or the economic output.