Explain the relationship between economic growth and labor ...

[ss2343]

Explain the relationship between economic growth and labor productivity.
 
  What will be an ideal response?

Question 2

Saving is not a problem in the classical model because
 
  A) savers and investors are the same people.
  B) interest rates are flexible, and savings were channeled into investment.
  C) the classical economists assume that saving was beneficial to people for retirement.
  D) saving would be spent by consumers eventually.

[daiying98]

Answer to Question 1

Economic growth equals the sum of the growth rates of all inputs plus the rate of growth in the productivity of the inputs. Hence, other things constant, an increase in labor productivity leads to an increase in economic growth.

Answer to Question 2

B

[ss2343]

Thanks for the timely response, appreciate it

[mohan]

Wow, this really help