What is the connection between productivity and economic growth?

Economic growth is characterized by an increase in the ability of the economy to ensure the wishes and needs of those who belong to the society. Productivity and economic growth are closely interconnected because economic growth occurs when productivity increases to allow such growth. Productivity occurs when various raw materials and other productive prerequisites, such as workforce and technology, are used to create a final product that is sold and used by consumers. When productivity decreases without the appropriate reduction in demand, prices are rising and fewer people are able to get what they want or need, so there is no economic growth.

There are many different factors that can contribute to increasing or reducing productivity and economic growth. For example, the availability of the necessary resources and raw materials is essential to make any production. Increasing the total employment level in the company and the amount of productivity every indiviidual is capable of beingé essential for the overall increase in both. Other factors such as technology and government policy can also significantly affect the productive capacity of society. As productivity increases, the company is able to directly or indirectly provide more people with what they need or want, leading to economic growth.

Increased productivity can be considered to reduce the input necessary to obtain the same output. For example, if one unit of a product that was previously produced by two people in an hour could be made by one person in 30 minutes, productivity would increase. More the same product could be produced faster and with less costs, provided that the cost of raw materials remain constant. Growth and productivity increase together because increasing productive capacity increases the abilities of the economy to ensure the needs and needs of all members of the company.

you also need to pannounce that these two factors can be increased by introducing new products, technologies and services. The contribution of new goods and services for the company also contributes to what the members of this company can own. In some cases, however, the introduction of new products and services starts older products and services, but thus damaging a certain industry of the economy. However, such new products and services can usually be made cheaper and more efficiently than older alternatives, so there is usually an overall increase in productivity and economic growth.