Which statement best describes the evolution of productivity growth in Canada?
A) From 1974 to 1982, Canadian productivity growth was slower than from 1966 to 1973. This continued a long-term downward trend in productivity growth.
B) From 1974 to 1982, Canadian productivity growth was slower than from 1966 to 1973. It appears that this was the result of a slowdown in technological progress.
C) From 1966 to 1973, Canadian productivity growth was slower than from 1974 to 1982. This continued an upward trend in productivity growth.
D) From 1966 to 1973, Canadian productivity growth was slower than from 1974 to 1982. It appears that this was the result of an upward trend in capital formation.

Question

Quizplus · Accepted Answer

The statement acknowledges that productivity growth was slower from 1974 to 1982 than from 1966 to 1973, but it attributes this slowdown to a slowdown in technological progress. It does not mention a long-term downward trend or an upward trend in productivity growth, which rules out options A and C. Option D suggests that the upward trend in productivity growth from 1974 to 1982 was due to an upward trend in capital formation, but the statement does not provide evidence to support this claim. Therefore, option B is the best choice as it provides a plausible explanation for the observed decrease in productivity growth during that period.

Which Statement Best Describes the Evolution of Productivity Growth in Canada