EssayBUS702: The Great Productivity Slowdown Puzzle – Management Assignment Help

Assignment Task:

Task:

1. The great productivity slowdown puzzle

https://review.chicagobooth.edu/economics/2018/article/why-hasn-t- technology-sped-productivity

https://review.chicagobooth.edu/economics/2019/article/how-low-interest-rates- can-hurt-competition-and-economy

Access the following articles (direct links are provided above):
1) “Why hasn’t technology sped up productivity?” by Chad Syverson. This article was published in Chicago Booth Review on Feb, 5, 2018.

2) “How low interest rates can hurt competition, and the economy” by Dee Gill. This article was published in Chicago Booth Review on April 23, 2019
Answer the following questions:
a) Chad Syverson writes, “Since economic growth requires productivity growth, if we don’t figure out why this (slowdown in productivity growth) is happening and how to fix it, we won’t get sustained increases in GDP per capita”.
By using the AD-AS (aggregate demand-aggregate supply) framework, explain Chad Syverson’s statement regarding the importance of productivity growth.

(10 points)
b) Chad Syverson writes, “Suppose the slowdown after 2004 hadn’t happened, and we kept going with the same average productivity growth that we saw from 1995 to 2004. That would mean GDP in 2017 would have been, conservatively speaking, $3 trillion higher than it was”.
Explain how Chad Syverson arrived at the conservative estimate of $3 trillion. That is, explain the calculation he had done to arrive at this number. US real GDP data can be found at this link: https://www.multpl.com/us-gdp-inflation-adjusted/table/by-year

(10 points)
c) Explain at least three arguments Chad Syverson gave against the mismeasurement hypothesis.