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Total Factor Productivity Growth
TFPG is a measure of long-term technological change or technological dynamism.
It measures how resources are being combined to produce more outputs.
TFPG accounts for up to 60% of growth within economies
Which of these two workers…
- Produces more?
- Requires more skill?
- Is paid more?
Productivity drives profits
Productivity drives wages
If productivity rises, wages and profits rise as well.