When Output Increases by 1%, the Number of Jobs Does

Multiple Choice

When output increases by 1%, the number of jobs does not tend to rise by 1% in the short run. Which of the following statements represents one of the reasons why this is true?

A) A firm is likely to meet some of the increase in output by increasing the number of hours worked per job.
B) A firm is likely to meet some of the increase in output by decreasing the number of hours worked per job.
C) Firms are likely to meet some of the increase in output by reducing labor productivity.
D) Firms are likely to meet part of the increase in output by eliminating any excess capital they may have.