Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 1, Problem 1RQ
To determine
The way of total output and output per worker changed over time in the United States and the way it affected the lives of typical people.
Expert Solution & Answer
Explanation of Solution
Labor productivity refers to the output per unit of labor input.
Unit labor costs, on the other hand, refer to labor cost per unit of output.
According to the Department of Labor, U.S. productivity growth was fairly strong in the 1950s but then declined in the 1970s and 1980s before rising again in the second half of the 1990s and the first half of the 2000s.
The rate of productivity measured by the change in output per hour worked averaged
A fall in total output leads to employment loss because lower output requires a smaller number of people. Hence, people were affected due to a loss in total output.
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