Question
Consider the following statements regarding
‘employment elasticity’: 1. It is a measure of the percent change in employment associated with a unit percentage point change in economic growth. 2. Construction has higher employment elasticity than agriculture. 3. Employment elasticity is a measure of the percentage change in employment associated with a 10% point change in economic growth. Which of the statements given above is/are incorrect?Solution
Employment elasticity is a measure of the percentage change in employment associated with a 1 percentage point change in economic growth.
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