The percentage increase in average weekly earnings in the U.S.is closely related to the percentage change in productivity plus the percentage change in _______________.
A) the consumer price index
B) unemployment
C) college enrollment
D) new hires

Question

Quizplus · Accepted Answer

The percentage increase in average weekly earnings in the U.S. is closely related to the percentage change in productivity plus the percentage change in the consumer price index (CPI). As productivity increases, there is more output per worker, which can lead to higher earnings. However, if prices are also increasing (as measured by the CPI), then the purchasing power of those higher earnings may be eroded. Therefore, the combination of productivity and CPI changes is important in understanding changes in average weekly earnings.

The Percentage Increase in Average Weekly Earnings in the U