The BLS reported the following data for the year to March2013: In the nonfarmsector, output increased 2.4 percent as aggregate hours increased 1.5percent; in the manufacturingsector, output increased 2.5 percent as aggregate hours increased by 0.9 percent.

(Source: bls.gov/news.release)

As aggregate hoursincreased, output increased but did labor productivity in each sectorincrease?

In which sector was growth in labor productivitygreater?

1) In the nonfarmsector, labor productivity______ and in the manufacturingsector, labor productivity______.

A.decreased; decreased

B.increased; increased

C.decreased; increased

D.increased; decreased

2) The growth of labor productivity was greater in the_______.

A.nonfarm sector because new technology is more likely to be implemented in this sector than in the manufacturing sector

B.manufacturing sector because output growth is similar in both sectors but the growth of aggregate hours is smaller in the manufacturing sector

C.nonfarm sector because output growth is similar in both sectors but the growth of aggregate hours is smaller in the manufacturing sector

D.manufacturing sector because output increased by 2.5 percent in the manufacturing sector but only by 2.4 percent in the nonfarm sector