Which of the following was NOT one of the likely causes of the productivity problem in the 1970s?
A)the increase in energy prices in the 1970s
B)high saving rates
C)an increase in government regulation
D)a slowdown in investment spending

Question

Quizplus · Accepted Answer

High saving rates were not a likely cause of the productivity problem in the 1970s. In fact, high saving rates can lead to increased investment and economic growth, which would typically lead to higher productivity. The other options (A, C, and D) could all have contributed to the productivity problem. The increase in energy prices would have increased production costs, making it harder for firms to produce goods and services at a competitive price. An increase in government regulation could have imposed additional costs on firms or made it harder for firms to innovate. A slowdown in investment spending would reduce the amount of capital available to firms, which would limit their ability to produce goods and services efficiently.

Which of the Following Was NOT One of the Likely