Real GDP per person is equal to:Group of answer choicesaverage labour productivity multiplied by disposable incomeaverage labour productivity multiplied by the share of the population employedaverage labour productivity multiplied by the total populationaverage labour productivity multiplied by marginal productivity of workers
Question
Real GDP per person is equal to:Group of answer choicesaverage labour productivity multiplied by disposable incomeaverage labour productivity multiplied by the share of the population employedaverage labour productivity multiplied by the total populationaverage labour productivity multiplied by marginal productivity of workers
Solution
Real GDP per person is equal to average labour productivity multiplied by the share of the population employed.
Here's the step by step explanation:
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Real GDP (Gross Domestic Product) is the total value of all goods and services produced in an economy, adjusted for inflation.
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Average labour productivity is the total output of an economy divided by the number of workers. It measures how much each worker contributes to the total output.
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The share of the population employed is the percentage of the total population that is employed.
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By multiplying the average labour productivity by the share of the population employed, we get the Real GDP per person. This is because the total output (GDP) is being divided among the number of people who contributed to producing it (the employed population).
So, the formula becomes: Real GDP per person = Average labour productivity x Share of the population employed.
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