One of the practice questions (number 4) mentions that productivity is highest during the bottom of a recession due to firms running on lean production (min amount of labor for given output).
I understand the logic behind this (found further explanations using other sources) but I am struggling to find anything in the actual text where it explains it. Seems weird to have a question on something that isn’t explained in the text.
There is a section that briefly discusses how productivity reduces at the start of a recession and increases at the start of a recovery, but nothing that says it will be higher in a trough than a peak.
“Productivity measures also offer insight into this cyclical process. Because productivity is usually measured by dividing output by hours worked, a business’s tendency to keep workers on the payroll even as output falls usually prompts a reduction in measured productivity. If measures are available promptly enough, this sign of cyclical weakness might precede even the change in hours. This drop in productivity precedes any change in full-time payrolls. Productivity also responds promptly when business conditions improve and the business first begins to utilize its underemployed workers, which occurs earlier than any upturn in full-time payrolls.”
Have I missed a section somewhere?