For This Question,assume Productivity Has Been Increasing by 5% Per

question 36

Multiple Choice

For this question,assume productivity has been increasing by 5% per year.Also assume that workers' expectations of productivity growth adjust slowly over time.For this economy,a reduction in productivity growth from 5% to 2% will most likely cause which of the following to occur?

• A)an increase in the natural rate of unemployment
• B)a reduction in the real wage
• C)an increase in the markup over labor costs
• D)all of the above
• E) none of the above

---

Definitions:

Breathing Rate

The number of breaths taken per minute, an important indicator of respiratory health and physical activity level.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by speeding up the heart rate, increasing blood flow to muscles, and more.

Electrical Conduction

The flow of electrically charged particles across a conducting pathway.

Polygraph Tests

A type of examination that measures physiological responses to questions in order to determine the truthfulness of the answers provided.