If workers sit idly by for a portion of their workday,but are still employed,________.
A)the negative productivity shock has no effect on output
B)it is unlikely that a decrease in aggregate demand is the cause
C)aggregate data may create a false illusion of a negative productivity shock
D)a negative productivity shock is the most plausible explanation

Question

Quizplus · Accepted Answer

Aggregate data can be misleading in this case as the idleness of some workers may not reflect a negative productivity shock overall. Therefore, it may create a false illusion of a negative productivity shock. It does not necessarily mean that a negative productivity shock is the most plausible explanation or that there is a decrease in aggregate demand.

If Workers Sit Idly by for a Portion of Their