Ceteris Paribus, an Increase in Labour Productivity Results in a

question 44

Multiple Choice

Ceteris paribus, an increase in labour productivity results in a

• A)higher real wage rate and higher potential GDP per hour of labour.
• B)lower real wage rate and higher potential GDP per hour of labour.
• C)higher real wage rate and lower potential GDP per hour of labour.
• D)lower real wage rate and lower potential GDP per hour of labour.
• E)constant real wage rate in the long run.

---

Definitions:

Guarantee

A formal assurance or promise, often related to the quality or durability of a product, or the fulfillment of a contract.

Guaranteed

Promised with certainty or underwritten with a promise of payment or performance.

Defaulted

Refers to the failure to meet a legal obligation or agreement, especially failing to make required payments on a loan.

Personal Property Security Act

Legislation that governs the creation and registration of security interests in personal property, aside from real estate, to secure payment or performance of an obligation.