There is a close relationship between changes in a nation's rate of productivity growth and changes in its average real hourly wage because if average real hourly wage and output per worker is
What will be an ideal response?
increasing, then the amount of output available per capita for workers to buy will be growing so more can be purchased. correct
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According to the authors of your text, a politician's interest in getting reelected
A) expands the politician's time horizon. B) leads the politician to concentrate on policies capable of generating short-run benefits. C) further encourages the politician to conform more to acting in the public interest. D) is based chiefly on selfish interest.
The natural unemployment rate increased significantly during the 1980s and the 1990s
Indicate whether the statement is true or false
When the price of a product falls, the income effect induces the consumer to purchase more of it while the substitution effect prompts her to buy less.
a. true b. false
Which of the following identifies an advantage of first differencing a time-series?
A. First differencing eliminates most of the serial correlation. B. First differencing eliminates most of the heteroskedastcicty. C. First differencing eliminates most of the multicollinearity. D. First differencing eliminates the possibility of spurious regression.