Drop in Real GDP/Person or Real Wage Drop?

CFA Level II
#1

Any thoughts?

#2

Real GDP goes up with population increases. Real Wages Decline. Was that the question? I can’t remember 100%.

#3

I think I chose real wage. No reasons for it.

#4

GDP?

#5

GDP seemed like the logical answer to me. The other ones seemed out of place, but I could be wrong

#6

I can’t remember the question any more,

#7

The government put restrictions on couples having babies…something like this… I narrowed it down to either a drop in GDP or a drop in GDP per labor hour… I choose drop in GDP b/c the drop in GDP per labor hour has to do with the existing workforce??? Total guess, but hopefully GDP was correct. Who knows…

#8

potential GDP for me- choice C

#9

okie, now I remember the question, I choose GDP

#10

rjs157 Wrote: ------------------------------------------------------- > The government put restrictions on couples having > babies…something like this… > > I narrowed it down to either a drop in GDP or a > drop in GDP per labor hour… > > I choose drop in GDP b/c the drop in GDP per labor > hour has to do with the existing workforce??? > Total guess, but hopefully GDP was correct. Who > knows… YES! I remember now. Put restrictions on births = lower population in the future. Lower population = drop in GDP, or economic output Wages increase because of a reduced supply of labor. GDP per hour labor increases because labor hours decrease. Decrease in the denominator (GDP/Labor Hours) equals an increase in the ratio.

#11

so the answer is lowers GDP right? ^^ I cant see how that cant be the answer, considering what makes up the components of GDP (invesment, consumption, etc) .

#12

Let’s pray for GDP

#13

GDP 100% sure.

#14

yeah i picked gdp too the other choices didn’t make much sense… e.g. why would productivity measured as gdp per labor hour necessarily move one way or another

#15

a. GDP b. real wages c. potential GDP something… surely was A.

#16

i marked POTENTIAL GDP because the policy of no immigration and restricting 2 kids is not implemented yet but is being considered.

#17

^^^ I thought the three choices were GDP Real Wages GDP per Labor Hour

#18

damn. i compared this question with china’s 1 child policy for some reason. so i thought 2 child is good, population goes up, more supply of labour so real wage drop. dammit dammit dammit

#19

oh, did u forgot the restrictions on immigration ?!, this will cause the increase in labor supply ?!

#20

I thought one of the choices was fewer technological innovations. And I think that’s what I put. Maybe it was lower potential GDP due to fewer tech innov.