In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker a. decreased between 1998 and 2008, so we would expect inflation to have decreased accordingly. b. increased between 1998 and 2008, so we would expect the standard of living to have increased accordingly. c. decreased between 1998 and 2008, so we would expect the standard of living to have decreased accordingly. d. increased between 1998 and 2008, so we would expect inflation to have increased accordingly.

b. increased between 1998 and 2008, so we would expect the standard of living to have increased accordingly.

Explanation:

Labor productivity is a measure of the amount of goods and services that the average worker produces in an hour of work. The level of productivity is the single most important determinant of a country's standard of living, with faster productivity growth leading to an increasingly better standard of living.

Therefore if In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker  increased between 1998 and 2008, so we would expect the standard of living to have increased accordingly.

C) decreased between 1998 and 2008, so we would expect the standard of living to have decreased accordingly.

Explanation:

the labor productivity in 1998 = 100 units / 40 hours = 2.5 units per hour

the labor productivity in 2008 = 72 units / 36 hours = 2 units per hour

Usually low inflation promotes predictable economic growth and higher productivity, while high inflation does exactly the opposite. Lower labor productivity also decreases the standard of living of the country's population.

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