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

Question

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

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

an increase in GDP with labor hours held constant

Answer 1

With all other economic forces held constant, an increase in labor productivity throughout the country implies an increase in GDP with labor hours held constant.

Higher labor productivity means that workers are producing more output per hour worked, which generally contributes to an increase in overall economic output (GDP) without the need for additional labor hours.