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What is a likely welfare effect of jobless GDP growth?

Answer and explanation

Correct answer: Broad income security may not improve despite higher output

GDP measures the value of final production, but it does not guarantee that production creates enough jobs or that its gains reach most households. In jobless growth, output can rise through automation, capital-intensive activity, or productivity gains while unemployment and income insecurity remain. Therefore, option B is correct; the other options incorrectly assume automatic equality, full employment, or irrelevance of distribution.

Related tags

Jobless GrowthEmploymentIncome SecurityGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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