Productivity and the Economy The U.S. Bureau of Labor Statistics (https://data.bls.gov/ timeseries/PRS85006092) provides quarterly data for labor productivity in business, nonfarm business, and manufacturing industries. The Bureau of Labor Statistics also breaks down these data into industry segments. The data for the annual percentage change in labor productivity for the category of nonfarm business productivity for a recent past decade follow:
Required Economists argue that the changes in productivity are influenced by changes in the economy— for example, the economic downturn of 2000–2001 as well as the recession that started in 2008. Others argue that productivity is most affected by advances in and adoption of information technology, investments in research and development, and capital investment in new plant and equipment (i.e., more highly automated and efficient manufacturing facilities). The preceding data show that productivity did decline in 2008 but was on the rise in the period 2009–2010 and improved again in 2012 but actually declined in 2016. Based on the preceding information and the data from the Census Bureau, what productivity change would you forecast for 2017 and the following couple of years?
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