A line showing the inverse relationship between the level of productivity and the growth rate of productivity is referred to as the
A)production function.
B)productivity function.
C)aggregate demand curve.
D)catch-up line.
E)growth accounting line.

Question

Quizplus · Accepted Answer

The catch-up line shows that as an economy's level of productivity increases, the growth rate of productivity slows down, indicating an inverse relationship. This is because as an economy becomes more productive, it becomes increasingly difficult to find ways to make further improvements.

A Line Showing the Inverse Relationship Between the Level of Productivity