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In an imaginary economy, GDP falls from $100 billion to $95 billion while output per worker rises from $5000 to $5020. In this economy there has been:

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Final answer:

GDP has fallen while output per worker has increased in an imaginary economy.

Step-by-step explanation:

GDP falls from $100 billion to $95 billion while output per worker rises from $5000 to $5020.

To determine what has happened in the economy, we need to analyze the changes in GDP and output per worker.

  1. The decrease in the GDP from $100 billion to $95 billion indicates a decline in the total value of goods and services produced in the economy.
  2. The increase in output per worker from $5000 to $5020 means that each worker is producing slightly more than before.

Therefore, in this imaginary economy, there has been a decline in overall production (GDP) but a slight increase in individual worker productivity.

User Todd Davies
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