Productivity measures (such as output per worker-hour) and wage rates adjusted for inflation in the United States are
A) inversely related.
B) unrelated.
C) directly, but not closely, related.
D) directly and closely related.

Question

Quizplus · Accepted Answer

Productivity measures and wage rates adjusted for inflation in the United States are directly and closely related. When productivity increases, it can lead to higher wages as workers become more valuable due to their increased output per hour. As a result, when productivity is high, wages tend to increase, and when productivity is low, wages tend to decrease. However, it should be noted that the relationship between productivity and wages is not always immediate or linear, and there may be other factors at play that influence wage rates.

Productivity Measures (Such as Output Per Worker-Hour) and Wage Rates