Reference no: EM13972548
Productivity is an important measure of economic growth. However, it can be misleading if taken as a measure by itself. For example, typically, when economic growth is slowed or declines (recession), business will decrease the number of workers, which typically will result in the remaining employees being more productive. If this is the case, why would business hire additional employees? Depending on the industry, the higher productivity may be unsustainable, as burnout or other opportunities will result in the employees leaving, and the business wants to expand, thus needing additional workers. Just as we discussed previously, the aggregate economy has a maximum sustainable output and the way to increase the maximum is by adding additional resources. Below is a link to the latest Productivity Report.
Below is a link to the latest Productivity Report that came out (2/4/2016). What are your thoughts on what is said here?
https://www.bls.gov/news.release/prod2.nr0.htm
2. Growth accounting is a method whereby a set of economic techniques or theories are used to determine what specific factor, or factors, contributed to an economy's growth. Growth accounting allows a company to examine the different aspects of growth with production per worker, technology, and savings, to determine which factor most likely created the increase in real GDP. How could growth accounting be employed in your organization to contribute to growth?
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