a sharp setback in the next few months that will not be reversed in one or two quarters (A Triple 1). Because of this economic slowdown, many predict that productivity growth will decline as well. This feared decline in GDP impacts a host of microeconomic and macroeconomic factors. For instance, the country’s economic policy is basically dictated by the Federal Reserve Chairman Alan Greenspan and officials at the Fed. Greenspan has given signs that he may lower the interest rate because of the anticipated drop in productivity. The Chairman stated recently that, “…the U.S. could not remain ‘an oasis of prosperity’ amid global troubles. If anything, he said that, in just a few months time, the crisis has begun to restrain the U.S. economy and those effects are ‘likely to intensify’” (A Triple 1).
Should anticipated lower productivity cause the Fed to lean towards slashing interest rates a variety of other factors will be set into motion. Th
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