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think of the total output produced in an economy in a year. Say the dollar amoun

ID: 1146097 • Letter: T

Question

think of the total output produced in an economy in a year. Say the dollar amount of this output,adjusted for price changes, is 500 billion in year 1. in year 2 , its falls to 490 billion. Also in year 2 its happens that the number of jobs in one particular industry declined from 1,000 to 900. Does it follow that number of jobs declining in a one particular industry was the cause of the decline in total output produced? think of the total output produced in an economy in a year. Say the dollar amount of this output,adjusted for price changes, is 500 billion in year 1. in year 2 , its falls to 490 billion. Also in year 2 its happens that the number of jobs in one particular industry declined from 1,000 to 900. Does it follow that number of jobs declining in a one particular industry was the cause of the decline in total output produced?

Explanation / Answer

No not at all. The decline of 10 billion may be contribution of many industries rather than contribution of one industry only. They is more likely case