Asked by Daina Simola on May 14, 2024
Verified
Which statement is true?
A) Because of the Great Recession,the combined state,local,and federal deficit in 2009 was about $1.5 trillion.
B) The key to productivity growth is the use of deteriorating and obsolete capital.
C) Immigration has long been a tremendous drain on our economy and has slowed our rate of economic growth.
D) Edward Denison about 90 percent of our economic growth to increases in productivity.
Great Recession
The Great Recession refers to the severe global economic downturn that occurred from late 2007 through mid-2009, characterized by significant declines in economic activity and employment.
Federal Deficit
The shortfall when a government's total expenditures exceed its total revenues for a fiscal year, leading to borrowing or debt accumulation.
Productivity Growth
An increase in the efficiency of production, measured as the amount of output per unit of input over time.
- Comprehend the elements influencing the expansion of productivity, notably the effects of technological advancements and educational progress.
- Acquire knowledge of the challenges and elements that have affected the United States' economic progress and output since the 1970s.
Verified Answer
Answer: D
According to Edward Denison, around 90 percent of our economic growth can be attributed to increases in productivity. This suggests that productivity growth is a key driver of economic growth.
Therefore, the correct statements are A and D. Statement B is false as the use of deteriorating and obsolete capital is not a key to productivity growth. Statement C is also false as immigration can actually boost economic growth.
Learning Objectives
- Comprehend the elements influencing the expansion of productivity, notably the effects of technological advancements and educational progress.
- Acquire knowledge of the challenges and elements that have affected the United States' economic progress and output since the 1970s.
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