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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 28
The Business Cycle
The Business Cycle
Real Wages Fail to Match a Rise in Productivity
For most of the last century, wages and productivity-the key measure of the economy's efficiency-have risen together, increasing rapidly through the 1950s and '60s and far more slowly in the 1970s and '80s. But in recent years, the productivity gains have continued while the pay increases have not kept up.
Explain the relationship between wages and productivity in this news clip in terms of real business cycle theory.
The Business Cycle
Real Wages Fail to Match a Rise in Productivity
For most of the last century, wages and productivity-the key measure of the economy's efficiency-have risen together, increasing rapidly through the 1950s and '60s and far more slowly in the 1970s and '80s. But in recent years, the productivity gains have continued while the pay increases have not kept up.
Explain the relationship between wages and productivity in this news clip in terms of real business cycle theory.
Explanation
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Macroeconomics 11th Edition by Michael Parkin
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