Shocks to total factor productivity are most plausible as an explanation of the recession of
A) 1974-1975.
B) 1979.
C) 1981-1982.
D) 1990-1991.
E) 2000-2002.

Question

Quizplus · Accepted Answer

The 1974-1975 recession was largely driven by the oil crisis, which can be seen as a shock to total factor productivity as it significantly increased production costs and disrupted economic activity.

Shocks to Total Factor Productivity Are Most Plausible as an Explanation