Productivity is ________.
A)determined by central bank policy
B)the combined effect of monetary and fiscal policy
C)the residual component of the production function
D)driven by changes in the rate of growth of output

Question

Quizplus · Accepted Answer

Productivity is defined as the amount of output per unit of input, or how efficiently resources are used in producing goods and services. In economic theory, productivity is considered a residual factor in the production function, meaning it is not directly influenced by monetary or fiscal policy measures, but is rather determined by a range of non-monetary factors, such as technological progress, efficient resource allocation, and innovation.

Productivity Is ________