In analyzing macroeconomic data during the past year,you have discovered that average labor productivity fell,but total output increased.What was most likely to have caused this?
A)There is nothing unusual in this outcome because this is what normally occurs.
B)The capital-output ratio probably rose.
C)There was an increase in labor input.
D)Unemployment probably increased.

Question

Quizplus · Accepted Answer

An increase in labor input can lead to an increase in total output even if average labor productivity falls. This is because more workers are producing goods and services, thus raising the total output, despite each worker's average productivity being lower.

In Analyzing Macroeconomic Data During the Past Year,you Have Discovered