Question

Which of the following explanations is consistent with the decline in productivity growth that followed the...

Which of the following explanations is consistent with the decline in productivity growth that followed the Great Recession?

Select one:

A. High levels of inflation following the Great Recession created too much uncertainty for firms, discouraging productivity-enhancing investments.

B. The Federal Reserve kept interest rates too high, stifling investments that would increase productivity.

C. Consumer demand following the Great Recession exceeded firms' capacity to satisfy that demand.

D. High levels of debt incurred prior to the Great Recession have hindered firms' ability to make productivity-enhancing investments.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: D

Great depression (GD) stayed for 10 years (1929 to 1939). This was the phase when firm faced huge monetary crisis. They took loans on that time for day-to-day running of the business.

Once the GD is over they did not able to invest freely which could increase productivity (such as purchasing of new machinery), because they had earlier debt-burden. Actually, the economy after GD was in the stage of recovery. It required few more years for stabilization.

Add a comment
Know the answer?
Add Answer to:
Which of the following explanations is consistent with the decline in productivity growth that followed the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which of the following policies are consistent with the goal of increasing productivity and growth in...

    Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries. CHECK ALL THAT APPLY! A. Protect property rights and enforce contracts. B. Pursue inward-oriented policies. C. Increase taxes on income from savings. D. Provide tax breaks and patents for firms that pursue research and development in health and sciences.

  • Which of the following is the best explanation of this cartoon? a. The Fed may buy...

    Which of the following is the best explanation of this cartoon? a. The Fed may buy bonds to increase bank reserves, but the money supply increases and interest rates fall only if banks lend the money. A decline in the money multiplier can defeat an increase in the monetary base. b. If the marginal propensity to consume in the consumption function is high, increases in disposable income will cause consumers to spend more, causing a bigger rise in aggregate demand,...

  • 1. Cause 2. Dynamics 3.draw a figure Ilallulul chsis that included debt deflation was the Great Depression, the worst et nomic contraction in U.S. history CATIO +The Mother of All Financial Crise...

    1. Cause 2. Dynamics 3.draw a figure Ilallulul chsis that included debt deflation was the Great Depression, the worst et nomic contraction in U.S. history CATIO +The Mother of All Financial Crises: The Great Depressi In 28 and 192 prices doubled in the U.S stock market. Federal Reserve offcal vie market boom as excessive speculation. To curb it, they pursued a tigh monetary policy to raise interest rates; the Fed got more than it bargained for when th stock market...

  • The "headline" unemployment rate (U-3) does not include which of the following discouraged workers other marginally...

    The "headline" unemployment rate (U-3) does not include which of the following discouraged workers other marginally attached workers those working part-time for economic reasons all of the above The demand for loanable funds is negatively related to the real interest rate because higher real interest rates generate more saving higher real interest rates raise the cost of capital higher real interest rates are caused by monetary policy higher real interest rates lower the cost of capital QUESTION 37 For a...

  • Match the following: 2. Adam Smith 3. Karl Marx 4. John Maynard Keynes Choices: (2 are...

    Match the following: 2. Adam Smith 3. Karl Marx 4. John Maynard Keynes Choices: (2 are not used.) a. invented capitalism b. invented socialism c. founder of modern macroeconomics d. founder of modern market economics e. predicted the end of capitalism 5. If a firm has trouble selling its good, it can a. lower price. b. increase demand. c. decrease supply. d. both a) and b) are correct. 6. People often pay too much for goods because they are not...

  • 1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World...

    1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...

  • Match the following: Adam Smith David Ricardo John Maynard Keynes Choices: (2 are not used.) a....

    Match the following: Adam Smith David Ricardo John Maynard Keynes Choices: (2 are not used.) a. founder of modern market economics comparative advantage-argument for mutual benefits of international trade comparative advantage-emphasized job displacements of international trade founder of modern macroeconomics invented capitalism duo If a firm has trouble selling its good, it can lower price. increase demand. decrease supply. both a) and b) are correct. 6. People often pay too much for goods because they are not aware of which...

  • QUESTION 53 6.66 points Save Answer Which of the following is not a determinant of the...

    QUESTION 53 6.66 points Save Answer Which of the following is not a determinant of the long-run level of real GDP? O a. available stock of human capital. O b. available technology O c. the price level. O d. the amount of capital used by firms. QUESTION 54 6.66 points Save Answer When households find themselves holding too much money, they respond by O a. purchasing interest-earning financial assets and interest rates fall. O b. holding the extra money and...

  • In an economy where the money supply and aggregate demand have been decreased by the Central...

    In an economy where the money supply and aggregate demand have been decreased by the Central Bank, you know that the Central Bank is using 答案选项组 a contractionary monetary policy. an expansionary monetary policy. a loose monetary policy. follow expansionary fiscal policy How does monetary policy affect the market? 答案选项组 Monetary policy has a more of an impact on consumption than investment. Monetary policy has a more of an impact on government spending than investment. Monetary policy has an indirect...

  • Please help me answer theses practice questions QUESTION 2 Which of the following can a country...

    Please help me answer theses practice questions QUESTION 2 Which of the following can a country implement to protect local industries (e.g. bicycles) according to the video on the deceptive promise of free trade? Border walls local training programs to strengthen local industries protectionist policies such as tarrifs creating a high minimum wage locally governments can't do anything QUESTION 3 Which of the following European countries has a trade surpluse with the US as well as most other European countries...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT