Question

4. Why is productivity important to the economy? What has happened to productivity growth in the US since 1995? discuss

Answer 1

Productivity is the measure of the relative goods and services to the inputs applied and this is indeed important because when the productivity is more, more goods and services can be sold with which more profits can be made and it improves the economy of the country. After the year 1995, the labor along with the total factor productivity accelerated in growth and this suggests that the US is taking a sustainable growth leap and modified its production activities such that it's production levels rises on the whole.