GDP Statistics and Unemployed Workers. In Economy A, the government puts workers on the payroll who cannot find jobs for long periods, but these “employees” do no work. In Economy B, the government...


GDP Statistics and Unemployed Workers. In Economy A, the government puts workers on the payroll who cannot find jobs for long periods, but these “employees” do no work. In Economy B, the government does not hire any long-term unemployed workers, but gives them cash grants. Comparing the GDP statistics between the two otherwise identical economies, what can you determine about measured GDP and the actual level of output in each economy?



May 20, 2022
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