Labor productivity is a key determinant of living standards from "summary" of Principles of Macroeconomics by N. Gregory Mankiw
Labor productivity is a crucial factor that determines the standard of living in a country. When workers are more productive, they can produce more goods and services in the same amount of time. This leads to higher wages for workers, as they are able to contribute more value to the economy. As a result, higher labor productivity is associated with higher average incomes and living standards for individuals in a society. Higher labor productivity also allows businesses to lower their costs, making goods and services more affordable for consumers. This can lead to an overall inc...
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