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Gordon Notes That Along with Slow Labor Productivity Growth in the Period

Question 16

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Gordon notes that along with slow labor productivity growth in the period 1973-1995,real wages also grew slowly.What sort of productivity shocks are consistent with this explanation of the link between real wage growth and the growth of labor productivity?


A) productivity shocks which decrease supply of labor given the demand for labor
B) productivity shocks which increase supply of labor given the demand for labor
C) productivity shocks which increase demand for labor given the supply of labor
D) productivity shocks which decrease demand for labor given the supply of labor

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