In a fictional country, 2,000 hours of labor are used in the production of all goods and services in the economy. The market values of these goods and services total $8,000
. The following year, 3,000 labor hours produce all goods and services in the economy. The market values of these goods and services total $12,000
. Assuming there is no inflation in this economy, which of the following is true?(1 point)
Responses
Labor productivity rose after the first year.
Labor productivity rose after the first year.
Labor productivity rose in both years.
Labor productivity rose in both years.
Labor productivity fell after the first year.
Labor productivity fell after the first year.
Labor productivity remained the same through both years.
Labor productivity rose in both years.
This is because the total market value of goods and services produced increased in the second year, even though more labor hours were used. This means that the economy was able to produce more output with the same amount of labor, indicating an increase in labor productivity.