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Testimony of Chairman Alan Greenspan

General questions in regard to article.

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<br>1) How does he explain the current lag of employment to an acceleration in economic activity?
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<br>Mr. Greenspan observes that substantial capital invetsments made in the late 1990s have resulted in significant improvement in the efficiency of the operation of the firms lately. Even though we see an acceleration in the aggregate demand and hence in economic activity, this increase in efficiency is currently helping the firms to meet the demand without adding proportional new work force and hence we still see a lag of new employment.
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<br>2) How did he characterize the impact of productivity on ...

Solution Summary

The current lag of employment to an acceleration in economic activity is explained.

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