The entry of baby boomers into the labor force and increased

The entry of baby boomers into the labor force and increased labor force participation of women

Select one:

A. Increased the employment rate and caused per capita GDP to rise.

B. Decreased the employment rate and caused per capita GDP to fall.

C. Increased the employment rate and caused per capita GDP to fall.

D. Decreased the employment rate and caused per capita GDP to rise.

Solution

Average labor productivity GDP/L=GDP/Pop x Pop/L

we need to divide the GDP per person figures given in table by the the L/Pop figures

1980 2010

Germany   42769.   39732

Japan 27975 44765

In Germany, GDP per capita increased, only because of increased employment relative to population. because as we can see from the above table, average labor producitivity decreasesd in germany from 1980 to 2010.

In Japan, GDP per capita increased, only because of increased labor productivity because as we can see from the above table, average labor producitivity increased in Japan from 1980 to 2010, while the atio of employment to population and average labor productivity remained almost the same.