Question

With all other economic forces held constant, an increase in labor productivity throughout the country implies _____.(1 point)
Responses

an increase in GDP with labor hours held constant
an increase in GDP with labor hours held constant

an increase in GDP due to an increase in labor hours
an increase in GDP due to an increase in labor hours

a decrease in GDP with labor hours held constant
a decrease in GDP with labor hours held constant

a decrease in GDP due to an increase in labor hours

Answer 1

The correct response is:

**an increase in GDP with labor hours held constant**

An increase in labor productivity means that the output produced per hour of labor increases, which would typically result in an increase in GDP if the total labor hours remain the same.