(Macroeconomics: A Contemporary Approach. 9 or 10th ed. /William A McEachern/978
ID: 2490156 • Letter: #
Question
(Macroeconomics: A Contemporary Approach. 9 or 10th ed. /William A McEachern/978-1-133-18813-1/Cengage South-Western)Read chapter 6-10.
Write a 500 words explaining what variables are important in order to increase productivity and development. Please include the PPF curve concepts, inflation and two more concepts in the readings applicable to your thesis. Always include a 100+ words critical thinking conclusion in all your assignments. Use references appropriately according to the APA guidelines.
Explanation / Answer
Ans: Productivity simply means the measurement of the effeciency of a person, Machine, comapny etc. it means is to convert input into useful output.It also consider how a company is utelising its resources to achieve the company objective.There are two major ways to increase the productivity these are either to increase the output that means the product which is to be generated should be more or decrease the input that means to reduce the cost or resources to be put to make the product.
An organisation should increase the labour produtivity, Machine productivity, energy productivity, capital productivity.The Relationship between inflation and productivity is key.Inflation may affect the accumulation of labour and capital it is most likely that its major effect will be to impede the efficiency of their organisation therefore it is clear that it will lower the productivity.
If we consider a link betwen inflation and productivity then there are two possible ways and these are that productivity affect inflation and inflation affected productivity.The first generally has higher productivity allowing cost reductions that flow through to product prices and thereby reduce inflation. The second effect posits that inflation affects productivity growth.
PPF stands for Production possibility Frontier. it is the point where a economy is giving its best in producing its goods and services and also enable to allocate resources in best possible ways,
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