Asked by Amber Draize on Mar 10, 2024
Verified
Statement I: Our rate of productivity growth has been negative for the last 20 years.
Statement II: Our low rate of savings has slowed our rate of productivity growth.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Productivity Growth
An increase in the efficiency of production, often measured as the amount of output per unit of input over a specific period.
Low Rate
An environment characterized by minimal interest, tax, or pricing levels.
Savings
The portion of income not spent on consumption, often put aside for future expenses, investment, or emergencies.
- Understand the impact of savings rates on productivity growth.
Verified Answer
JA
Jesse AllenMar 10, 2024
Final Answer :
B
Explanation :
Statement I is false because the productivity growth rate has been positive, although it has been slowing down in recent years. Statement II is true because low savings can result in a lack of investment in capital and technology, which reduces productivity growth.
Learning Objectives
- Understand the impact of savings rates on productivity growth.