Table A Productivity and Costs, 2009 2nd Quarter report (http://www.bls.gov/news
ID: 1201466 • Letter: T
Question
Table A Productivity and Costs, 2009 2nd Quarter report (http://www.bls.gov/news.release/archives/prod2_08112009.pdf accessed 29 July 2015) depitcted that, in regard to the business sector:
-6.3% increase in output per hour (productivity) from 1st quarter 2009
-1.8% decrease in output from 1st quarter 2009
-7.5% decrease in hours (workers) from 1st quarter 2009
What happened to the rate of unemployment between the 1st and 2nd quarter of 2009? Is what happened to the unemployment rate make economic sense? Use the relevant economic concept(s) we have studied to justify your answer (10 points)
Explanation / Answer
From the given information, it can be inferred that unemployment increased from the first quarter to the second quarter (as seen from the decline in labor hours).
It can also be seen that productivity increased by about 6.3%, which implies that a fall in labor employment does not mean that output would fall drastically, it only means that output might fall, but not too much because of increased labor productivity.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.