Question

what two factors are the keys to determining labor productivity?
a. the level of technology and the quantity of capital per hour worked
b. the business cycle and the growth rate of real gdp
c. the growth rate of real gdp and the interest rate
d. the average level of education of the workforce and the price level

Explanation:

Labor productivity is determined by the level of technology (which affects how efficiently labor can produce) and the quantity of capital per hour worked (more capital can enhance labor's output). The business cycle (B) is more about economic fluctuations, real GDP growth rate (B, C) is a result rather than a key determinant of labor productivity. The interest rate (C) relates to financial aspects. The price level (D) is about inflation and not a core factor. The average education level (D) is somewhat relevant but not as directly key as technology and capital per hour worked.

Answer:

A. the level of technology and the quantity of capital per hour worked