RSM100Y1 Study Guide - Midterm Guide: Naomi Klein
Document Summary
*productivity is a measure of how much output a country gets from its inputs (technology growth triggers more outputs for the same inputs; adds to the standard of living") Labour productivity": measures output per worker or per unit; affects real" wage, affected by capital or other inputs, in addition to technology. Total factor productivity" (tfp): is growth not accounted for by other inputs. Productivity mattes for profits both nationally and in the firm (high productivity causes stock-market boom) Future productivity growth is a key in long-term economic outlook. Capital stock is a key contributor to labour productivity, but impact can vary widely. Tfp"s some possible contributors: research&development, higher or lower education, infrastructure, industry, institutions" (laws, regulations, and property rights) In future, shareholders and governments will continue to keep increasing productivity. It and new tech make productivity growth more potential. A large increase in us labour prod and tfp started from approx 1994 to 2000 due to growth of it.
