Average Labout Productvity

ECON1102 Macroeconomics Submission Question Question 1 (i)Why do economists consider proceeds in average out proletariat productivity to be the chief(prenominal) factor in ascertain long-run living standards? At a macroeconomics level, average labour productivity is the most definitive determinant of economic growth, competitiveness and especially living standards. Since echt gross domestic product per person equals average labour productivity compute by the share of the population that is employed, it is evident that real GDP per person can only grow to the extent that at that place is growth in worker productivity and/or the component of the population that is employed. As a result, growth in average labour productivity is the main factor in determining long- run living standards. This is certainly reflected in statistics which reveal that mingled with 1965 and 2006, real GDP per person in Australia grew by 108%, most correlated with the upward trend in average labour productivity. Labour productivity indicators may be an official yardstick of economic exertion in relation to explicit polity targets. Further, these indicators provide an instrument to improve or monitor the performance of a country or its industries.

Average labour productivity specifically allows for the analysis of the labour market through the valuation of the relation between wage increases and productivity. It may also urge effective labour, employment and labour market reform and polity development. In addition, a series such as this reports on the productivity of the sectors and industries of a country and allows for comparison, over time, of industries, or branches of industries. much(prenominal) effects of labour productivity facilitate long-term growth, ability and competitiveness which is the cornerstone for high long-term living standards. contrary other factors, for example technological innovations, land and other indwelling resources, which contribute to long-run living standards, growth in average labour productivity is... If you want to get a practiced essay, order it on our website: Orderessay

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