Discuss the relationship between aggregate productivity growth and price inflation.Draw a diagram (similar to Figure 17.8), putting average annual productivity growth on the horizontal axis and average annual price changes on the vertical axis. If you were to plot relevant data for, say, 60 or 70 major industries, what general relationship would you expect? Explain.

Figure 17.8

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Support activities for mining Ol and gas extraction Software publishors Coal mining Elactronic shopping and mal-order houses Postal service - Taxtile furnishings mills Book, perlodical, and music stores -Tobacco and tobacco products -8 Cut-and sow apparel Fabric mills -8- -6 -4 -2 10 12 14 16 18 Productivity. output per worker-hour (avarago annual parcantage change) Employm ont (average annual percentage change 00