Shocks to Total Factor Productivity Are Most Plausible as an Explanation

question 13

Multiple Choice

Shocks to total factor productivity are most plausible as an explanation of the recession of

• A) 1974-1975.
• B) 1979.
• C) 1981-1982.
• D) 1990-1991.
• E) 2000-2002.

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Definitions:

Profitability

A financial metric used to assess a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Expensive Milling Machine

A high-cost machine used in manufacturing to shape metal or other materials with high precision.

Constraint

A limitation or restriction that affects the performance or capacity of a process, system, or organization.

Profitability

The ability of a company or product to generate income over cost, leading to profit.