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Can average labor productivity fall even though total output is rising? Can the unemployment rate rise even though total output is rising?

User Akia
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1 Answer

2 votes

Answer:

Yes; Yes

Step-by-step explanation:

Average labour productivity can fall even though total output is rising as long as employment is increasing. When employment increases, the total output increases, but it can lead to a decline in average labour productivity.

Average labour productivity/ Total output

Similarity, it is possible; if the average productivity increases the unemployment rate can decrease even though the output is rising.

User Luchostein
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