A good measure of productivity is
A) the interest rate.
B) the inflation rate.
C) aggregate output divided by employment.
D) the growth rate of aggregate output.

Question

Quizplus · Accepted Answer

Productivity is measured by the amount of output produced per unit of input. One commonly used measure of productivity is the ratio of aggregate output (GDP) to the number of hours worked (employment), which is captured by choice C. The other options, interest rate, inflation rate, and growth rate of aggregate output, are not direct measures of productivity.

A Good Measure of Productivity Is