Technology and Economic Growth Quick Check

Question

1 of 51 of 5 Items
Question
With all other economic forces held constant, an increase in labor productivity throughout the country implies _____.(1 point)
Responses

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 due to an increase in labor hours
a decrease 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
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Answer 1

The correct response is:

an increase in GDP with labor hours held constant.

An increase in labor productivity means that more output is produced per hour of labor. Therefore, with labor hours held constant, GDP will increase because the economy is producing more goods and services.