Why is productivity growth important?
A) because it is the only way an economy can increase GDP
B) because it ultimately increases a nation's standard of living
C) because a large increase in productivity growth causes a small decrease in GDP
D) because it causes an increase in the quantity of all resources available to an economy

Question

Why is productivity growth important?  
A) because it is the only way an economy can increase GDP 
B) because it ultimately increases a nation's standard of living 
C) because a large increase in productivity growth causes a small decrease in GDP 
D) because it causes an increase in the quantity of all resources available to an economy

Quizplus · Accepted Answer

Productivity growth is important because it leads to an increase in the economy's output of goods and services, which ultimately increases a nation's standard of living. This is because productivity growth allows for more efficient use of resources and can lead to lower costs of production, enabling businesses to offer lower prices or higher wages to their workers. It also allows for more resources to be allocated towards investment and innovation, which can further boost economic growth and development.

Why Is Productivity Growth Important