To measure productivity in an economy,we compute the actual real GDP and then divide it by

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To measure productivity in an economy, we need to calculate the amount of output produced for each unit of input. Therefore, we divide the actual real GDP by the amount of labor that went into producing it. This gives us a measure of labor productivity or output per worker. Other measures of productivity could also be used, such as output per unit of capital or output per hour worked. But dividing real GDP by labor input is a commonly used measure of productivity.

To Measure Productivity in an Economy,we Compute the Actual Real