Higher energy prices in the 1970s ________ labor productivity because a great deal of investment went into transforming the existing capital stock into more energy-efficient forms.
A) had no impact on
B) slightly increased
C) reduced
D) more than doubled

Question

Quizplus · Accepted Answer

The higher energy prices in the 1970s reduced labor productivity as investments were redirected towards making the existing capital stock more energy-efficient, rather than towards direct productivity-enhancing measures.

Higher Energy Prices in the 1970s ________ Labor Productivity Because