Question
11 OF 40 QUESTIONS REMAINING
Question 30
1 Point
An economy’s rate of productivity growth is closely linked to the growth rate of its
(A) GNP
(B) cutbut
© GDP per capita
(D) technalogy
1 Point
(A) GNP
(B) cutbut
© GDP per capita
(D) technalogy
Ask by Young Boyd. in the United States
Mar 30,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The correct answer is GDP per capita.
Solution
We know that an economy’s labor productivity is defined as the output per worker. Under the assumption that the labor force participation rate is fairly constant, productivity growth is closely reflected by the growth rate of output per person. In national income accounting,
Since labor productivity growth and
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Simplify this solution Extra Insights
An economy’s productivity growth is largely influenced by advancements in technology, which drive efficiency and innovation. When businesses implement new technologies, they often see significant improvements in productivity, leading to a more robust economy. This can create a ripple effect, fueling job creation and higher wages, making the economy more vibrant and competitive.
In practical terms, this means that countries investing in research and development tend to experience faster growth rates. They also attract talent and investment, building a stronger economic foundation for the future. So, as technology evolves, so does the landscape of productivity—exciting, isn’t it?
