Question

The economic growth model explains growth in real gdp per capita in the long run. because of the importance of labor productivity in explaining economic​ growth, the economic growth model focuses on the causes of increases in​ long-run labor productivity. what are the key factors that determine labor​ productivity? ​(mark all that​ apply.)

Answer 1

The term labor quantity defines the quantity of goods and services that can be produced by one worker or by one hour of work. The key factors that determine labor​ productivity and lead to economic growth are: quantity of capital per hour worked and the level of technology. The better the technology the bigger the productivity.