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The Economy's Secret Sauce How can the U.S. get the economy to grow, real wages to climb and inflation to fall-all at the same time?
The Economy's Secret Sauce How can the U.S. get the economy to grow, real wages to climb and inflation to fall-all at the same time? Rising productivity. On that front, the Labor Department reported good news Thursday: Labor productivity, a measure of output per hour worked, advanced at a 4.7% annual pace in the third quarter. That was the second consecutive quarterly increase and the biggest improvement in three years. "While the data are particularly volatile, higher productivity growth is helping to support the supply side of the economy, which is one reason why inflation remains on a downward trend even as economic growth is resilient," said Oxford Economics economist Michael Pearce.In the AS-AD framework, the link between productivity and inflation can best be characterized in which of the follow ways? Group of answer choices Increased productivity pushes SRAS further to the left. Incerased productivity pushes SRAS to the right. Increased productivity pushed AD to the right. Increased productivity pushed AD to the left. Increased productivity pushed LRAS to the right. Increased productivity pushed LRAS to the left
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