According to an article in the Wall Street Journal, Federal Reserve Chair Janet Yellen stated that unless obstacles to some women working in the paid labor force are removed, the United States will “incur a substantial loss to the productive capacity of our economy.” Ms. Yellen also stated that more women in the labor force would “help overcome long-term challenges such as an aging population and slow productivity growth.”

a. What measure do economists use for the productive capacity of the economy?

b. Why might an aging labor force and slow productivity growth pose long-term challenges to the U.S. economy? How might more women working in the paid labor force help overcome these challenges?