Increases in Productivity Result In

question 85

Multiple Choice

Increases in productivity result in:

• A) higher inflation as output increases.
• B) lower inflation as output decreases.
• C) opportunities for policymakers to reduce their inflation target without inducing a recession.
• D) none of the answers provided is correct.

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Definitions:

Commissions

A form of payment to an employee based on completing a task or making a sale, often a percentage of the sale amount.

Merit Pay

Pay increase given to employees based on their job performance, as a reward for their contributions towards organizational goals.

Indirect Pay

Compensation that includes benefits not given directly as cash, such as health insurance, retirement plans, and paid time off.

Income Tax Treatment

Refers to the way tax laws are applied to an individual's or entity's income, including deductions, exemptions, and the calculation of taxes owed.