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.

A. True
B. False

Respuesta :

Answer:

False

Explanation:

Technological progress is perhaps the greatest factor in increasing productivity.

In an industry, productivity is measured as a ratio between quantity of output per unit of input. Inputs include direct materials, direct labor and factory overhead costs. New technologies reduce inputs while increasing output levels.

For example, new machinery may produce 50% more units per hour than old machinery, therefore the inputs required to produce one unit of output are reduced.