Question

According to the U.S. Bureau of Labor Statistics, total factor productivity in the U.S. private nonfarm business sector decreased by 1.2 percent in 2022. Which of the following statements correctly explains this outcome?

Choose TWO correct answers.

Select A
Outputs decreased but were higher than inputs of labor and capital.

Select B
Labor and capital, overall, did not impact total factor productivity in 2022.

Select C
Outputs increased, and inputs of capital and labor decreased.

Select D
Inputs of capital and labor were more than the increase of outputs.

Select E
Both capital and labor growth outpaced output growth.

Answer 1

Correct answers: D and E.

Explanation: A decline in total factor productivity means combined inputs (capital and labor) rose faster than outputs — i.e., inputs exceeded the increase in outputs (D), and both capital and labor growth outpaced output growth (E).