The Reason Why Small Changes in Productivity Growth Rates Have

Multiple Choice

The reason why small changes in productivity growth rates have large long-term effects on economic growth over the long run is that

A) lower productivity growth makes labor discouraged,compounding the problem
B) lower productivity growth effects on the economy are compounded over the years,leading to large cumulative effects
C) when the productivity growth rate falls,output actually falls
D) lower productivity growth for one resource means lower productivity growth for all resources
E) output usually falls when productivity grows