The Reason Why Productivity Growth Is So Important Is That

question 3

Multiple Choice

The reason why productivity growth is so important is that

• A)it is the key to long-run increases in the standard of living
• B)per capita GDP ultimately depends on labor productivity
• C)total GDP cannot increase without increases in resource productivity levels
• D)all of the above
• E)both a and b

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Definitions:

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, stock exchanges, and investment firms.

Subprime Mortgages

loans offered to individuals with poor credit histories or lower qualification criteria at higher interest rates, significantly contributing to the 2008 financial crisis.

Nuclear Weapons

Explosive devices that derive their destructive force from nuclear reactions, either fission or a combination of fission and fusion.

Saddam Hussein

The fifth President of Iraq, serving from 1979 to 2003, known for his authoritarian rule, involvement in regional wars, and the impact on his country’s economy and human rights record.