Question

Which of the following is the reason behind the slow growth in U.S. incomes during the 1970s and 1980s? The United States experienced an increase in competition from abroad. Labor unions were relatively weak. There was a slowdown in productivity growth. Minimum-wage laws were not in place to protect the livelihoods of workers.

Answer 1

Answer: The correct answer is "There was a slowdown in productivity growth.".

Explanation: The reason behind the slow growth in U.S. incomes during the 1970s and 1980s is that there was a slowdown in productivity growth.

In the decade between 1970 and 1980 the United States went through various economic problems that caused a slowdown in productivity growth which inevitably caused income growth to be noticeably slower.