Other things being equal, if the labor input grows faster than total output, total factor productivity falls.

Name: Other things being equal, if the labor input grows faster than total output, total factor productivity falls.
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Question

Quizplus · Accepted Answer

Total factor productivity measures how efficiently inputs are being used to produce output. If labor input grows faster than output, it suggests that labor is becoming less productive and therefore total factor productivity would decrease.

Other Things Being Equal, If the Labor Input Grows Faster