Total factor productivity growth involves

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Total factor productivity growth is the increase in output that is not due to an increase in input. It is often attributed to improvements in technology or efficiency gains. Research and development by firms, education, and training on the job are examples of factors that can contribute to total factor productivity growth. Spending on national defence and the environment, increasing the size of government, and favourable government policies may have an impact on the economy but do not directly contribute to total factor productivity growth. Increasing consumption per worker and income per worker are outcomes of total factor productivity growth, rather than factors that contribute to it.

Total Factor Productivity Growth Involves