Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because
A)spending on new government regulations such as the Clean Air Act increased output dramatically without increasing the standard of living of Americans.
B)significant improvements in the quality of services occurred,although the quantity of these services did not increase much during this time.
C)changes in well-being are accurately reflected in statistics measuring economic growth.
D)higher production costs from higher oil prices raised production and transportation costs and reduced output.

Question

Quizplus · Accepted Answer

Some economists argue that the slowdown in economic growth during the mid-1970s may not have reduced the standard of living because significant improvements in the quality of services occurred, although the quantity of these services did not increase much during this time. This means that even though the economy was not growing as fast, the quality of services being provided was improving, which could have offset or even outweighed the negative effects of slower economic growth.

Some Economists Argue That the Apparent Slowdown in Economic Growth