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

Responses

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

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

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

a decrease in GDP with labor hours held constant

1 answer

The correct response is:

an increase in GDP with labor hours held constant

An increase in labor productivity means that workers are able to produce more goods and services in the same amount of time. Therefore, if labor hours are held constant, GDP would increase because more output is being generated without the need for additional labor hours.