Excluded from a list of reasons often cited as responsible for the slowdown in U.S.productivity during the 1970s is the
A) increase in the proportion of youths and women in the labor force.
B) reduction in the rate of growth of the capital-labor ratio.
C) presence of increased amounts of government regulation.
D) reduction in the proportion of GDP devoted to research and development.
E) price stability and stable interest rates over that period, which reduced profit opportunities.

Question

Quizplus · Accepted Answer

The option E states that price stability and stable interest rates over that period reduced profit opportunities, which contradicts the notion that unstable prices and interest rates were responsible for the slowdown in productivity. A, B, C, and D are cited as possible reasons for the slowdown in productivity.

Excluded from a List of Reasons Often Cited as Responsible