What is meant by labaur productivity and show how change in labor productivity may affect on economy production possibility curve?

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1206361

2026-04-23 03:35

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When productivity changes, it affects the productive capacity of an economy. Labour, as an input in production, helps to determine total output produced. When labour productivity falls,that is ouput per labour per decreases goods then total production falls. The PPP (also known as the PPF) moves inward to represent the fewer production choices available. When labour productivity increases, the curve shifts outward to represents increased production and production choices.

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