When production in an economy grows more quickly than the ...

[mp14]

When production in an economy grows more quickly than the population in that economy, which of the following must be occurring?
 
  A) Incomes are growing at a slower rate than the population.
  B) Real GDP per capita is rising.
  C) Living standards are falling.
  D) Real GDP is falling.

Question 2

The Bureau of Labor Statistics does not count discouraged workers as unemployed. Suppose discouraged workers were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.
 
  What will be an ideal response?

[TheNamesImani]

Answer to Question 1

B

Answer to Question 2

Both the unemployment rate and the labor force participation rate would increase. The number of unemployed would rise, as would the labor force. The unemployment rate would rise because adding the same number to the numerator and the denominator of a fraction that is less than one increases the value of the fraction. The labor force participation rate would rise because the labor force increases with no change in the working-age population.

[mp14]

Excellent

[nyrave]

Gracias!