Explain in detail whether the following is true or false: Total factor productivity will rise only...
Explain in detail whether the following is true or false:
Total factor productivity will rise only if technological progress takes place.
Homework Answers
Answer
False
Total factor productivity will rise if there is a change in technology, other changes in the economy, skills and human capital growth so it does not change only by technological progress.
Total factor productivity is the production divided by the inputs used and it shows the real change in the increase of each factor.
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