2The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed. Why did this occur? Capital per hour worked (labor) grew rapidly from 1950 to 1980, but technological change occurred very slowly.Capital per hour worked (labor) grew slowly, but technological change grew very rapidly.Increasing implementation of new technologies eventually suffered diminishing marginal returns.The centrally planned economy invested too heavily in technological change.Consumption goods eventually took priority.

Economic growth is the rise in the value of the products that an economy produces over time. The…

Answered: 2 The Soviet Union's economy grew…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter25: Production And Growth

Section: Chapter Questions

Problem 6CQQ

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The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed. Why did this occur?

Capital per hour worked (labor) grew rapidly from 1950 to 1980, but technological change occurred very slowly.
Capital per hour worked (labor) grew slowly, but technological change grew very rapidly.
Increasing implementation of new technologies eventually suffered diminishing marginal returns.
The centrally planned economy invested too heavily in technological change.
Consumption goods eventually took priority.

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