Between March 2001 (the official start of the recession) and March 2002, measured RGDP in the economy actually rose by about 2.5%, even though total employment in terms of hours worked declined by 1.8% and the unemployment rate rose sharply from 4.3% to 5.8% (The GDP Deflator only increased by about 1% - 1.4% during this period)(This tendency for employment to decline despite growth in RGDP continued up to and right through the summer of 2003)
1. What can you infer from this data about labor productivity growth in the US economy during the period March 2001-March 2002? Give a numeric answer if possible and explain your answer in a few sentences.
Productivity is a measure of resource or input efficiency expressed in terms of a ratio: Productivity = output/input. Productivity tells us how many units of output we can obtain from a unit of inputs. If output per unit of input increases, productivity has risen. ...
What can you infer from this data about labor productivity growth in the US economy during the period March 2001-March 2002?