Productivity growth slowed rapidly after 1973.Bruno and Sachs argue that the slowdown is partially explained by
A)reduced growth in capital per capita since increasing numbers of women entered the labor force.
B)the reduction in savings rates caused by inflation and the U.S.tax system.
C)the "residual" nature of technological change.
D)the rapid increase in the relative price of energy.

Question

Quizplus · Accepted Answer

Bruno and Sachs argue that the rapid increase in the relative price of energy after 1973 contributed to the productivity slowdown, as higher energy costs can reduce economic efficiency and growth.

Productivity Growth Slowed Rapidly After 1973