Do the recent high technological advances and productivity rates mean that the business cycle is dead?
A)Yes, the faster rate of productivity growth will eliminate recession.
B)Yes, the changes in technology have a compound, positive effect on the economy.
C)No, the trend line for economic growth is just steeper, but there can still be economic downturns.
D)No, the fact there are many start-up firms means that there will be more bankruptcies that will hurt the economy.

Question

Quizplus · Accepted Answer

The recent high technological advances and productivity rates may result in a steeper trend line for economic growth, but it does not eliminate economic downturns entirely. While it is true that technology can have a positive effect on the economy, it does not mean that the business cycle is dead. There can still be recessions or other external factors that may cause economic downturns. The presence of start-up firms also does not necessarily indicate a negative impact on the economy.

Do the Recent High Technological Advances and Productivity Rates Mean