The empirical evidence suggests that periods of high productivity growth will cause which of the following in the short run?
A)higher markups
B)lower unemployment
C)constant real wages
D)greater equality in wages
E) none of the above

Question

Quizplus · Accepted Answer

High productivity growth typically leads to increased demand for labor, which can lead to lower unemployment in the short run. However, it is not necessarily associated with higher markups, constant real wages, or greater equality in wages.

The Empirical Evidence Suggests That Periods of High Productivity Growth