A decrease in the growth rate of labor productivity is likely to cause a decrease in ________.
A)the growth rate of the real wage
B)the growth rate of the marginal product of capital
C)the growth rate of the labor supply
D)the share of labor income in national income
E)none of the above

Question

Quizplus · Accepted Answer

A decrease in the growth rate of labor productivity means that workers are producing goods and services at a slower pace than before. This would lead to a decrease in the growth rate of the real wage, as workers would be producing fewer goods and services per unit of time, resulting in a decrease in their overall income. The other options are not directly affected by a decrease in labor productivity growth.

A Decrease in the Growth Rate of Labor Productivity Is