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If real GDP stays constant while the same output is produced in fewer working hours, what may happen?

Answer and explanation

Correct answer: Welfare may rise because leisure time increases

Real GDP measures output at constant prices, so it can remain unchanged when the same output is produced in fewer hours. The extra time may be used for leisure or rest, which can improve quality of life. Thus, welfare may rise, making option A correct.

Related tags

Real GdpWorking HoursLeisureWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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