Macroeconomic Fundamentals› National Income, Growth & Development
Level of per capita GDP depends upon which of the following?
1. Proportion of population in the working age 2. Work participation rate 3. Per worker productivity Select the correct answer using the code given below.
Answer d.
Per capita GDP equals the working-age share times the work participation rate times output per worker, so all three matter. GDP per person can be written as (working-age population ÷ total population) × (workers ÷ working-age population) × (GDP ÷ workers). Each factor, the share of working-age people, the proportion of them actually working and the productivity of each worker, therefore affects per capita GDP.
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