Question

Labor productivity is the key to raising living the standard as measured by consumption per person....

Labor productivity is the key to raising living the standard as measured by consumption per person. In practice, the living standard can be measured either by consumption per person or by income per person.

Show that labor productivity is the key to raising living the standard as measured by income per person (that is, real GDP per person).

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Answer #1

Labour productivity is the measurement of output of economy per hour. that means it's show how much output produced for an hour of labour.

Labour productivity increase the living standard of people because the Real income per person ( Real GDP) increase will cause the people capable to buy more good and services, improve housing and educational status, increase their social contribution and also helps to the business to maximize profits. so we can say that labour productivity will obviously increase the standard of living.

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