Answer:
An increase in productivity directly impacts positive economic growth.
Explanation:
Productivity is the ratio between production and the resources used to carry it out.
The aggregate productivity of a country could be calculated or estimated by adding up all those produced in a given period valued in monetary units divided by all the costs incurred to obtain this production.
The productivity can increase if the production increases and the costs are in the same level, if the production is in the same level but the costs decrease, both of them decrease but the costs decrease in greater proportion than the production or if the production increase in greater proportion than the costs.
The last case is the one with the highest occurrence in reality.
If the difference between the production and the cost of the production factors grows, the individuals and companies can increase their level of savings and then invest those savings in technological improvements, innovations, new businesses, etc. so that global productivity is further increased and the economy is further diversified.
This mechanism leads to an increase in corporate profits, greater tax collection by governments, wage increases for workers, greater diversity of available goods and services, etc. This results in a higher standard of living for the population and definitely economic growth.
This economic growth will continue to grow if the increase in productivity is maintained over time. It is a mechanism that feeds permanently.
