An Increase in Labour Productivity

question 105

Multiple Choice

An increase in labour productivity

• A)allows the average consumer to increase consumption.
• B)will increase the labour force participation rate.
• C)will create short-run, but not long-run, economic growth.
• D)will increase output and decrease wages in the long run.
• E)causes a decrease in the demand for labour in the long run.

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Definitions:

Transactions Affect

Refers to the impact that business transactions have on the financial statements, altering the balances of accounts.

Time Period

In accounting, a specific duration for which financial statements are prepared, commonly a month, quarter, or year.

Unearned Revenues

Money received for services or products that have yet to be delivered or performed; recognized as a liability until the revenue is earned.

Liability Account

An account on a company's balance sheet that represents debts or obligations that the business needs to pay off in the future.