Average labor productivity tends to be a coincident variable. Examine Figure 3.15 care- fully. During the 1991–1992, 2001, and 2008– 2009 recessions, how do you observe average labor productivity behaving relative to GDP? Comment on this, and explain what this has to do with the Macroeconomics in Action box on jobless recoveries. Figure 3.15 Percenta ge Deviations from Trend in Average Labor Productivity (black line) andReal GDP (co lored line) for 1948-2015Average labor productivity is procyclical and coincident, and it is less variable than is real GDPSource: Data from U.S. Department of Commerce, Bureau of Economic Analysis, and Bureau of Labor Statistics,Stephen D. WilliamsonALPGDP-8194019601970198019902000201020201950YearPercentage Deviation From Trend

A coincidental variable is used and analysed as it occurs. A coincidental variable is generally used…

Answered: Figure 3.15 Percenta ge Deviations from…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Average labor productivity tends to be a coincident variable. Examine Figure 3.15 care- fully. During the 1991–1992, 2001, and 2008– 2009 recessions, how do you observe average labor productivity behaving relative to GDP? Comment on this, and explain what this has to do with the Macroeconomics in Action box on jobless recoveries.

Figure 3.15 Percenta ge Deviations from Trend in Average Labor Productivity (black line) and
Real GDP (co lored line) for 1948-2015
Average labor productivity is procyclical and coincident, and it is less variable than is real GDP
Source: Data from U.S. Department of Commerce, Bureau of Economic Analysis, and Bureau of Labor Statistics,
Stephen D. Williamson
ALP
GDP
-8
1940
1960
1970
1980
1990
2000
2010
2020
1950
Year
Percentage Deviation From Trend

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