Which of the following is true regarding the productivity slowdown in the United States during the mid-1970s?
A)The productivity slowdown occurred despite a rising quality of labor.
B)The productivity slowdown was unique to the United States,as foreign countries experienced unprecedented rates of growth during that time.
C)High oil prices raised the costs of doing business for markets worldwide,and reduced output worldwide as well.
D)The move toward a "new economy" ended in the early 1970s,resulting in less technological progress in the United States during the mid-1970s.

Question

Quizplus · Accepted Answer

The productivity slowdown in the United States during the mid-1970s was largely due to the impact of high oil prices, which raised the costs of doing business for markets worldwide and reduced output worldwide as well. Option A is incorrect because the rising quality of labor was not sufficient to offset the negative impact of higher costs of production. Option B is incorrect because other countries also experienced productivity slowdowns during this period. Option D is incorrect because the move towards a new economy actually began in the mid-1970s, not ended.

Which of the Following Is True Regarding the Productivity Slowdown