Question

what would slow down productivity growth?

Answer 1

Productivity is the ratio of output to input; such as labor productivity, capital productivity, material productivity, etc. A small increase in productivity gives large cumulative effect in the long-run in terms of economic growth. The growth in productivity is very necessary because it gives higher standard of living.

Productivity = Output / Input

Answer: Ineffective and inefficient use of input would lead to a slow productivity and its growth.

Example: Suppose in a factory labor input is used. Labors produce goods but their waste is very high; in that case, output would be lower than input, creating low productivity. The effective use of input must minimize the waste; if this is not done, productivity growth would be slow.