Article Summary According to the U.S.Department of Labor,nonfarm Labor Productivity Rose at Rose

question 135

Multiple Choice

Article Summary
According to the U.S.Department of Labor,nonfarm labor productivity rose at an annualized rate of 0.9 percent in the second quarter of 2017 as hours worked and output per worker both rose at their fastest pace in 18 months.Compared to the same quarter in 2016,productivity increased at a rate of 1.2 percent,its best performance in two years.,while unit labor costs fell at a rate of 0.2 percent.From 2007 to 2016,labor productivity increased at an average annual rate of 1.2 percent,well below its long-term growth rate of 2.1 percent from 1947 to 2016.This is an indication of a decline in the potential growth rate,blamed in part on a shortage of workers and low capital expenditure.
Source: Lucia Mutikani,"U.S.productivity rises in second quarter,keeps labor costs in check," reuters.com,August 9,2017.
-Refer to the Article Summary.In the second quarter of 2017,labor productivity in the United States rose at its fastest pace in 18 months.Labor productivity is important for an economy because an increase in labor productivity

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

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Definitions:

Alternative Policy Options

Different strategies or approaches that policymakers can use to address specific economic, social, or political issues.

Increases the Money Supply

A monetary policy action that makes more money available in the economy, typically intended to stimulate economic growth.

Money Multiplier

The ratio that measures the amount of money that banks are able to create with each unit of central bank reserves.

Spending Multiplier

The ratio of the change in total income to the initial change in spending that brought it about, illustrating how initial spending leads to further spending in the economy.