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Unformatted text preview: • an increase in productivity (the amount of product produced by each unit of capital or labor) Labor Productivity • Labor productivity refers to the output per worker; the amount of ouput produced by an average worker in one hour. • Economic growth from an increase in labor -- more output but diminishing returns and lower labor productivity • see Table 19.1 on page 406 in the textbook • Employment, labor force and population growth, 1947 to 1997 • see Table 19.2 on page 407 in the textbook • Economic growth from an increase in capital -- more output, diminishing returns to added capital, higher measured labor productivity • see Table 19.3 on page 408 in the textbook...
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- Spring '99