Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because
A)services were becoming a more important part of the economy and it was hard to measure increases of output from services.
B)new environmental laws had passed that forced firms to spend to reduce pollution, and this spending did not raise output.
C)increased spending on health and safety raised worker productivity.
D)A and B
E)B and C

Question

Quizplus · Accepted Answer

The productivity slowdown appeared to happen due to the increasing importance of services in the economy, which are harder to measure in terms of output, and new environmental laws that required firms to spend on pollution control without directly increasing output.

Some Economists Argue That the Productivity Slowdown from Mid-1970s to Mid-1990s