In analyzing macroeconomic data during the past year, you have discovered that average labour productivity fell, but total output increased. What was most likely to have caused this?
A. Government deficit was reduced.
B. The capital/output ratio probably rose.
C. There was an increase in labour input.
D. Unemployment probably increased.
Answer:C
In analyzing macroeconomic data during the past year, you have discovered that average labour productivity fell, but total output increased. What was most likely to have caused this?
A. Government deficit was reduced. B. The capital/output ratio probably rose. C. There was an increase in labour input. D. Unemployment probably increased.