What two key factors that cause labor productivity to increase over time?

1 answer:

4 0

One pretty straightforward answer could be investment to physical and human capital. But if you are if you are working with a mathematical model the answer to your question depends on the specific model. For example, in an equilibrium model from economic theory, you could find the determinants of labour productivity by taking the partial derivative of the production function with respect to the amount og labour.

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