The idea that measurement problems could explain the productivity slowdown since 1973 is based on the fact that
A)official output measures make no adjustment for quality.
B)output can't be measured.
C)capital can't be measured.
D)quality improvements aren't fully accounted for in the data.

Question

Quizplus · Accepted Answer

The idea that measurement problems could explain the productivity slowdown since 1973 is based on the fact that quality improvements aren't fully accounted for in the data. Official output measures make adjustments for inflation, but they do not fully account for quality improvements. This means that even as productivity has improved, the official measures may not fully capture this improvement, leading to an underestimate of productivity growth.

The Idea That Measurement Problems Could Explain the Productivity Slowdown