Employing an Additional 1 Billion Hours of Labor Increases Real

question 82

Multiple Choice

Employing an additional 1 billion hours of labor increases real GDP by $12 billion.Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion.Hence we can conclude from this information that as employment increases,real GDP

• A)increases at an increasing rate.
• B)decreases at an increasing rate.
• C)decreases at a decreasing rate.
• D)increases at a decreasing rate.
• E)falls from $12 billion to $11 billion as more workers are hired.

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Definitions:

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