If a nation’s productivity grows by 3% rather than 1.5% over many years, what will be the difference in the nation’s standard of living? Explain
Please provide the best answer for the statement.
The answer is based on the rule of 70. A 3% increase in labor productivity means that the standard of living in an economy will double in about 23 years (70/3). An increase in labor productivity that is 1% less, or 1.5%, means that it will take 47 years (70/1.5) for the standard of living to double.
Economics
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