In a Particular Country in 1999,the Average Worker Had to Work

question 4

Multiple Choice

In a particular country in 1999,the average worker had to work 20 hours to produce 55 units of output.In that same country in 2009,the average worker needed to work 28 hours to produce 77 units of output.In that country,the productivity of the average worker

• A)increased by 2 percent between 1999 and 2009.
• B)increased by 5 percent between 1999 and 2009.
• C)remained unchanged between 1999 and 2009.
• D)decreased by 3 percent between 1999 and 2009.

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Definitions:

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or commodity, leading to increased prices and a decrease in the equilibrium quantity.

Short-run Aggregate Supply

The total quantity of goods and services that producers in an economy are willing and able to produce and sell at a given overall price level in a given period, with some input prices not fully adjusted.

Long-run Aggregate Supply

Long-run aggregate supply represents the total output an economy can produce when it is fully employing its resources, reflecting the economy’s potential growth rate without accelerating inflation.

Aggregate Supply

The aggregate amount of products and services that businesses within a country intend to offer for sale over a particular period.