The long-run growth rate of real GDP depends primarily on the growth in the number of hours worked and the growth rate of labor productivity.

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In the long run, the rate of economic growth is determined by the growth rates of labor productivity and the number of hours worked. Labor productivity measures the amount of goods and services produced per hour of work, while the number of hours worked depends on population growth, labor force participation, and changes in working hours. These two factors are the main drivers of long-term economic growth, as they determine how much output can be produced by the economy.

The Long-Run Growth Rate of Real GDP Depends Primarily on the Growth