Question:

PLEASE HELP ME~~ Economic question?

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GDP/population = GDP/worker x Workers/People Aged 15 to 65 x People Aged 15 to 65/Total population

Q: Assume that government pension policy encourages all workers over the age of 65 to retire. Consider what would happen if the share of a nation's population that is of working age (15 to 65) decreases because people live longer, causing the fraction of people over age 65 to increase.

True or False: In this case, if labor productivity and the employment rate remain constant, GDP per capita will decline.

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2 ANSWERS


  1. if total number of people remains the same and GDP per capita takes into account all people, it will remain constant.  it just means that fewer workers are producing the stuff


  2. True. GDP per capita will fall because there will be less labor used for production but population will remain the same.

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