Average labour productivity tends to be
A)countercyclical and more variable than real GDP.
B)acyclical with real GDP.
C)procyclical and less variable than real GDP.
D)procyclical and more variable than real GDP.
E)countercyclical and less variable than real GDP.

Question

Quizplus · Accepted Answer

Average labour productivity tends to be procyclical, moving in the same direction as the economy (i.e., it tends to increase in booms and decrease in recessions). It is generally less variable than real GDP because the workforce does not adjust as quickly as output does.

Average Labour Productivity Tends to Be