Which of the following would NOT be an example of a productivity shock?
A)the introduction of new management techniques
B)a change in government regulations affecting production
C)a change in the level of government transfer programs
D)a spell of unusually good or unusually bad weather

Question

Quizplus · Accepted Answer

A productivity shock refers to a sudden change in the efficiency level of production. The introduction of new management techniques, changes in government regulations affecting production, or a spell of unusually good or bad weather can all lead to sudden changes in productivity levels. However, a change in the level of government transfer programs would not directly affect productivity, and therefore would not be considered a productivity shock.

Which of the Following Would NOT Be an Example of a Productivity