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Answer to Question #59599 in Macroeconomics for ali
Question #59599
Productivity/real values.
Percent change in wages = 8%.
Inflation = 3%.
What is the percent change in productivity?
Percent change in wages = 8%.
Inflation = 3%.
What is the percent change in productivity?
Expert's answer
Productivity = Wage rate/unit labor cost
Inflation influences both the wage rate and the unit labor cost in the same way.
Therefore productivity change will be directly dependant on the percent change in wages.
Inflation influences both the wage rate and the unit labor cost in the same way.
Therefore productivity change will be directly dependant on the percent change in wages.
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#340153 on Dec 2023
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