Average labor productivity tends to be a coincident variable. Examine Figure 3.15 care-fully. During the 19911992, 2001,

Question:

Average labor productivity tends to be a coincident variable. Examine Figure 3.15 care-fully. During the 1991€“1992, 2001, and 2008€“2009 recessions, how do you observe average labor productivity behaving relative to GDP? Comment on this, and explain what this has to do with the Macroeconomics in Action box on jobless recoveries.

Figure 3.15:

ALP -2 GDP -6 -8 1940 1950 1960 1970 1980 1990 2000 2010 2020 Year 4. 2. Percentage Deviation From Trend