One hypothesis for declining productivity growth rates since the Great Recession is that
technological progress has been so rapid that ﬁrms have not been able to keep up in terms of
investment.

Question

Quizplus · Accepted Answer

This hypothesis is incorrect. In fact, some economists argue that technological progress has been relatively slow in recent years, which has contributed to the decline in productivity growth rates. Other factors such as demographic changes, decreasing competition, and weak investment may also be contributing to the slowdown in productivity growth.

One Hypothesis for Declining Productivity Growth Rates Since the Great