Question

1.19. If employment coefficient is positive and greater than 1; then

[1] There is economic growth.

[2] There is an increase in employment opportunities.

[3] A 1% economic or real GDP growth rate will result in a more than 1% increase in employment

[4] There is an increase in potential GDP.

[5] There is no economic growth.

Answer 1

[3] A 1% economic or real GDP growth rate will result in a more than 1% increase in employment