If labour productivity growth slows down in a country, this will

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Quizplus · Accepted Answer

Labour productivity growth is one of the key drivers of economic growth and increasing real GDP per capita. If labour productivity growth slows down, this means that workers are producing less per hour of work, which leads to lower output and slower economic growth. Therefore, a slowdown in labour productivity growth would slow down the increase in real GDP per capita. It would not necessarily affect nominal GDP, as nominal GDP includes inflation and price changes, which can still increase even if productivity growth slows down.

If Labour Productivity Growth Slows Down in a Country, This