An increase in labor productivity

Question

Quizplus · Accepted Answer

An increase in labor productivity means that workers are able to produce more output per hour, which leads to an increase in total output. This increased output can be used to increase consumption by consumers, leading to economic growth.

B, C, and D are incorrect: 
B is unrelated to labor productivity. 
C is incorrect because an increase in labor productivity can lead to long-term economic growth. 
D is incorrect because while an increase in labor productivity may lead to decreased wages in the short run, it can also result in increased wages in the long run as productivity gains increase demand for labor.

An Increase in Labor Productivity