What could low productivity growth in a country suggest?
What will be an ideal response?
Low productivity growth could mean that the economy of that country is stuck in a rut. Without much productivity gain, businesses have to either cut wages or boost prices to make profits, possibly leading to further economic slowdowns. This may have resulted from higher energy prices, excessive government intervention, or an aging workforce.
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If expenditure by the government of a country increases, ________
A) the aggregate price level of the country will decrease B) the country's expenditure on consumption will decrease C) the unemployment rate in the country will increase D) the gross domestic product of the country will increase
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. All else equal, a $10 increase in the price of satellite TV will cause the quantity of cable TV demanded to:
A. decrease by 3,000 households. B. increase by 3,000 households. C. decrease by 5,000 households. D. increase by 5,000 households.
The general approach to obtaining fully robust standard errors and test statistics in the context of panel data is known as _____.
A. confounding B. differencing C. clustering D. attenuating
If the Naval Research Laboratory fired a chemist and the Environmental Protection Agency hired her at the same salary, the net effect of these events would cause _____
Fill in the blank(s) with the appropriate word(s).