Productivity growth:

Name: Productivity growth:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

During a recession, companies tend to cut back on their workforce and other resources, which can lead to a temporary decline in productivity growth. However, during an expansion, companies tend to invest in new technology and other resources, which can lead to an increase in productivity growth above its trend rate. Therefore, productivity growth tends to be procyclical, with a positive relationship with the business cycle.

Productivity Growth