When Output Increases by 1%, the Number of Jobs Does

question 284

Multiple Choice

When output increases by 1%, the number of jobs does not tend to rise by 1% in the short run. Which of the following statements represents one of the reasons why this is true?

• A) A firm is likely to meet some of the increase in output by increasing the number of hours worked per job.
• B) A firm is likely to meet some of the increase in output by decreasing the number of hours worked per job.
• C) Firms are likely to meet some of the increase in output by reducing labor productivity.
• D) Firms are likely to meet part of the increase in output by eliminating any excess capital they may have.

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