Productivity Fluctuates Along a Business Cycle Because

question 209

Multiple Choice

Productivity fluctuates along a business cycle because

• A) firms usually keep excess labor.
• B) workers tend to become more productive during expansions.
• C) workers tend to become less productive during expansions.
• D) Both B and C are correct.

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Definitions:

Attrition

The natural reduction of workforce due to employees leaving the company for various reasons, such as resignation or retirement, without being replaced.

Voluntary Turnover

The process in which employees choose to leave a company on their own accord rather than being terminated or laid off.

Retirements

The act of leaving one's job and ceasing to work after reaching a certain age or for health reasons.

Cause-and-Effect Models

Analytical tools or diagrams used to identify and represent the relationships between various factors and the outcomes they produce.