5. Figure 3-5 shows that in U.S. data, labors share of total income is approximately a constant...

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5. Figure 3-5 shows that in U.S. data, labor’s share of total income is approximately a constant over time. Table 3-1 shows that the trend in the real wage closely tracks the trend in labor productivity. How are these facts related?

Could the first fact be true without the second also being true? Use the mathematical expression for labor’s share to justify your answer.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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