Explain how output per capita can grow faster than labor productivity.
Output per capita can rise more quickly that labor productivity if people simply work more hours. They will make more output without doing so in a more productive manner.
Output per capita is measured simply by taking a country’s output (measured by something like gross domestic product) and dividing it by the number of people in the country. By contrast, labor productivity looks at the number of hours that people work. It takes the...
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