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

question 192

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.A slowdown in the growth rate of labor productivity,as occurred from 2007-2016,will likely result in

• A)an increase in real wages and an increase in the inflation rate.
• B)a decrease in nominal wages and an increase in the inflation rate.
• C)an increase in the country's potential growth rate.
• D)a decline in the country's potential growth rate.

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