As the Economy Starts to Expand, Labor Productivity Rises as Firms

question 104

True/False

As the economy starts to expand, labor productivity rises as firms start using any excess labor they kept during the recession.

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Definitions:

Psychological Exchange Theory

A social psychology concept suggesting that interpersonal relationships are formed and maintained based on perceived rewards and costs, mutual benefits, and fairness.

Social Exchange Theory

A theory that suggests human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.

Social Contagion

Imitative behavior involving the spread of behavior, emotions, and ideas.

Elaboration Likelihood Model

A theory explaining how people are persuaded, emphasizing the significance of the motivation and ability to process messages.