AP Macroeconomics Question 204: Answer and Explanation

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Question: 204

13. The size of the labor force in Japan is expected to shrink beginning in 2010 as a large segment of its population retires. This will

  • A. affect labor productivity more than economic growth.
  • B. affect economic growth more than labor productivity.
  • C. not have a major effect on economic growth or labor productivity.
  • D. affect labor productivity and economic growth equally.
  • E. shift Japan's aggregate supply curve to the right.

Correct Answer: B

Explanation:

(B)