Business, 06.05.2020 04:18 putaprincess16

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.

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