Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 4

Explain the relationship between changes in (a) nominal wage rates, (b) productivity, (c) unit labor costs, and (d) product price. What does this relationship suggest about the expected impact of productivity growth on employment in a particular industry? Can you reconcile your generalization with Figure 17.8?