Question

One hypothesis for declining productivity growth rates since the Great Recession is that technological progress has been so rapid that firms have not been able to keep up in terms of investment. Group startsTrue or False

Answer 1

Answer:

False

Explanation:

history has documented that the Great Recession occurs between December 2007 to June of 2009. The recession lead to losses in countries such as the output went down and unemployment went up. The causes of the Great Recession are Rising Inequality, Loosening of bank lending rules and rise of mortgage securitization.

Technological advance is hand in hand with capital formation. Productivity growth rates is of utmost importance due to the fact that productivity growth rates have a big impact on future economic growth and development of the​ new economy was due to advances in information technology.