QuestionJuly 22, 2025

Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP? A decline in the average length of the work week. A decrease in the labor force participation rate. An increase in the size of the working age population. A decline in the amount of capital per worker.

Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP? A decline in the average length of the work week. A decrease in the labor force participation rate. An increase in the size of the working age population. A decline in the amount of capital per worker.
Other things equal, which of the following would increase the rate of economic
growth, as measured by changes in real GDP?
A decline in the average length of the work week.
A decrease in the labor force participation rate.
An increase in the size of the working age population.
A decline in the amount of capital per worker.

Solution
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Answer

An increase in the size of the working age population. Explanation 1. Analyze each option A decline in the average length of the work week would reduce total labor hours, potentially decreasing GDP. A decrease in the labor force participation rate means fewer people working, which could lower GDP. An increase in the size of the working age population increases potential labor supply, likely boosting GDP. A decline in the amount of capital per worker reduces productivity, possibly lowering GDP.

Explanation

1. Analyze each option<br /> A decline in the average length of the work week would reduce total labor hours, potentially decreasing GDP.<br /> A decrease in the labor force participation rate means fewer people working, which could lower GDP.<br /> An increase in the size of the working age population increases potential labor supply, likely boosting GDP.<br /> A decline in the amount of capital per worker reduces productivity, possibly lowering GDP.
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