Labor force productivity has increased from $30 per hour to $32 per hour over the past year. This could result from

Question

Quizplus · Accepted Answer

Labor force productivity can increase due to an increase in real GDP or a decrease in aggregate hours worked. Therefore, choices A, C, D, and E can be ruled out. Since there is no information given about changes in the labor force participation rate or population, choice B is the most likely option. In this scenario, the increase in productivity is likely due to technological advancements, improved training, or other factors that allow workers to produce more output per hour worked.

Labor Force Productivity Has Increased from $30 Per Hour to $32