US Productivity Rises at Fastest Rate in Three Years

Nonfarm labor productivity increased at a 4.7% annualized rate last quarter, the fastest since the third quarter of 2020, the Labor Department said.—reuters.com

Answer the following questions to check your understanding of the story.

What is labor productivity?

Labor productivity is __________.

a) 100 minus the unemployment rate

b) the quantity of real GDP produced at full employment divided by the labor force

c) the quantity of real GDP produced by an hour of labor

d) the price of labor per single unit of output

Why might labor productivity have increased?

Labor productivity might have increased if _____________.

a) real GDP and aggregate hours both increased

b) the labor force increased

c) physical capital or human capital increased or technological advances

d) the unemployment rate fell

US Productivity Rises at Fastest Rate in Three Years

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