Dollar, Labor Market Point to Productivity Growth: Chadha

The video discusses the dramatic growth in productivity following the 2008 financial crisis, highlighting the role of exogenous factors and technical progress. It examines the impact of the crisis, noting that productivity growth was achieved through layoffs rather than technical advancements. The video also explores historical cycles of productivity growth, emphasizing the importance of tight labor markets and a strong US dollar in driving rapid growth.

What was a major factor that contributed to the increase in productivity during the financial crisis?

• Increased consumer spending

• Government intervention

• Corporate pressure and layoffs

• Technical progress

How are tight labor markets related to productivity growth?

• They decrease productivity due to higher wages.

• They have no impact on productivity.

• They drive productivity growth by pressuring companies to optimize.

• They lead to more layoffs, reducing productivity.

What is a characteristic of past rapid productivity growth phases?

• Weak US dollar

• Tight labor markets

• High unemployment rates

• Loose labor markets

What combination has historically led to increased productivity growth?

• Weak dollar and high unemployment

• Strong dollar and tight labor market

• Strong dollar and loose labor market

• Weak dollar and tight labor market

When was the last time a strong dollar and tight labor market led to a significant increase in productivity growth?

• 1980

• 2010

• 1995

• 2008