An increase in labor productivity necessarily means an increase in real GDP per capita if:

A) real GDP increases.
B) the employment growth rate is greater than the population growth rate.
C) the employment growth rate is less than the population growth rate.
D) the size of the labor force remains constant.
E) real GDP increases more rapidly than nominal GDP.

Labor Productivity

A measure of the economic output produced per unit of labor input.

Real GDP Per Capita

A measure that reflects the average economic output per person, adjusted for inflation, providing insight into the standard of living across different countries or regions.

Employment Growth Rate

The rate at which job creation increases in an economy over a specified period of time.