The productivity slowdown in 1973 appears to be primarily the result of a decrease in the capital to labour ratio.

Question

Quizplus · Accepted Answer

The productivity slowdown in 1973 is attributed to a variety of factors including energy price shocks, changes in the demographic composition of the workforce, a shift from manufacturing to services, and possibly a slowdown in technological innovation, rather than primarily a decrease in the capital to labour ratio.

The Productivity Slowdown in 1973 Appears to Be Primarily the Result