Question

One hypothesis for declining productivity growth rates since the Great Recession is that individuals and firms have focused more on paying off debt than on making productive investments.

(True/False)

Answer 1

True. During the Great Recession, individuals and firms focused more on paying off debt than making productive investments.

Step-by-step explanation:

The hypothesis that individuals and firms have focused more on paying off debt than on making productive investments is true. During the Great Recession, many individuals and firms experienced financial difficulties and high levels of debt. As a result, they prioritized debt repayment over making new investments. This focus on debt reduction may have contributed to the decline in productivity growth rates since the Great Recession.