If the Commerce Department adjusts the growth rate of GDP downward for the first quarter of 2011,and the Bureau of Labor Statistics adjusts the number of hours worked upward for the first quarter of 2011,what will the Bureau of Labor Statistics do in terms of revising the figures on the growth rate of labor productivity for the first quarter of 2011?
A) The BLS will adjust the growth rate downwards.
B) The BLS will adjust the growth rate upwards.
C) The BLS will not change the growth rate of productivity.
D) The BLS will adjust the level of labor productivity upward and the growth rate downward.

Question

Quizplus · Accepted Answer

The growth rate of labor productivity is calculated as the growth rate of GDP minus the growth rate of hours worked. If GDP growth is adjusted downward and hours worked are adjusted upward, the growth rate of labor productivity will be adjusted downward.

If the Commerce Department Adjusts the Growth Rate of GDP