Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

The optimum level of population is taken to be the population level at which real output per person reaches its maximum. The diagram illustrates how population size and output per head in a country are related for two separate time periods. Which change could not satisfactorily account for the movement from year 1 to year 2?

  • APopulation has increased.
  • BState of technology has improved.
  • CStock of capital has increased.
  • DVolume of productive resources in use has increased.

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