Question
And finally, a few years ago the Wall Street Journal reported that U.S. productivity grew at the fastest clip in more than a year during
And finally, a few years ago the Wall Street Journal reported that "U.S. productivity grew at the fastest clip in more than a year during the second quarter, signaling steady growth in the economy and a gauge ofinflationary pressure dropped...." (emphasis added) and in the article entitled "Supply Side of Economy Is Flashing Strength" the author states that "you can boost economic growth in the short-run by juicing demand, such as with tax cuts or spending increases. But you can only sustain faster growth in the long-run with more workers producing goods and services more efficiently.Withoutlabor force andproductivity growth .....increased demand strains the economy's resources, spurring inflation...." (emphasis added).
What is the impact of productivity growth on a nation's inflation rate or level?
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