Why Labor Productivity Grows?

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You are aware that with an increase in potential GDP, there is also an increase in labor productivity. If we want our standard of living to increase and continue growing, it is necessary that per person real GDP and labor productivity also increases. But there are few important questions related to this aspect too.

  • What is the requirement of growing labor productivity?
  • Why at times growth in labor productivity is higher and at times lower?
  • What are the conditions that help in this growth of this labor productivity?

 

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