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29 January, 10:32

Can average labor productivity fall even though total output is rising? Can the unemployment rate rise even though total output is rising?

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  1. 29 January, 10:50
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    Yes; Yes

    Explanation:

    Average labour productivity can fall even though total output is rising as long as employment is increasing. When employment increases, the total output increases, but it can lead to a decline in average labour productivity.

    Average labour productivity / Total output

    Similarity, it is possible; if the average productivity increases the unemployment rate can decrease even though the output is rising.
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