If productivity of an economy increases then:

Question

Quizplus · Accepted Answer

Productivity measures the amount of output produced per unit of input (usually labor). Therefore, if productivity increases, it means that each worker is producing more goods and services per hour. This leads to an increase in the overall output of the economy, which is reflected in a higher real GDP per capita. Choices B and D are not related to productivity, and choice C is incorrect because an increase in productivity leads to an increase, not a decrease, in real GDP per capita.

If Productivity of an Economy Increases Then