Suppose that productivity growth in an economy over a two-year period has fallen to less than 2% per year, causing a severe recession. From the neoclassical view, which of the following will be more important in these circumstances?
A. an increase in the annual unemployment rate
B. supply and demand in the labor market
C. the problem of cyclical unemployment
D. the growth rate of long-term productivity
Answer:D
Suppose that productivity growth in an economy over a two-year period has fallen to less than 2% per year, causing a severe recession. From the neoclassical view, which of the following will be more important in these circumstances?
A. an increase in the annual unemployment rate B. supply and demand in the labor market C. the problem of cyclical unemployment D. the growth rate of long-term productivity
Explanation: Type: Multiple Choice