The Effect of an Increase in Labour Productivity, Assuming No

question 66

Multiple Choice

The effect of an increase in labour productivity, assuming no change in the supply of labour, is
i. an increase in the real wage.
ii. an increase in potential GDP.
iii. a decrease in the demand for labour.

• A) i only
• B) i and ii
• C) i and iii
• D) ii and iii
• E) i, ii and iii

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