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

Question

Quizplus · Accepted Answer

Average labor productivity is procyclical, meaning it tends to increase during economic expansions and decrease during recessions, and it is generally less variable than real GDP because labor productivity smooths out fluctuations in output.

Average Labor Productivity Tends to Be