In order to raise the GNP and the GDP per capita one must____________?
Correct answer: B. increase productivity
- A. earn more money
- B. increase productivity
- C. increase absenteeism
- D. decrease productivity
Explanation
Higher productivity means producing more goods and services with the same resources, which raises real output and per-capita GNP or GDP. Merely earning more money does not necessarily increase national output.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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