During the recent 2007-08 recession, total factor productivity (TFP) dropped temporarily while labor productivity kept on increasing. Which one of the below statements is a plausible explanation?
a. TFP dropped because of less intensive use of factors of production.
b. Labor productivitiy increased because the capital-labor ratio increased.
c. TFP dropped and labor productivity increased because firms laid off the least productive workers.
d. TFP dropped because energy prices dropped. Labor productivity increased because of advances in information and communications technology (ICT).
e. TFP dropped because of technological regress. Labor productivity increased because of better education.
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “During the recent 2007-08 recession, total factor productivity (TFP) dropped temporarily while labor productivity kept on increasing. Which ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » During the recent 2007-08 recession, total factor productivity (TFP) dropped temporarily while labor productivity kept on increasing. Which one of the below statements is a plausible explanation? a.