Solved

For This Question,assume Productivity Has Been Increasing by 5% Per

Question 36

Multiple Choice

For this question,assume productivity has been increasing by 5% per year.Also assume that workers' expectations of productivity growth adjust slowly over time.For this economy,a reduction in productivity growth from 5% to 2% will most likely cause which of the following to occur?


A) an increase in the natural rate of unemployment
B) a reduction in the real wage
C) an increase in the markup over labor costs
D) all of the above
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions