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  • Efficiency and productivity

Click to read the article and then answer the questions:

Europe faces ‘competitiveness crisis’ as US widens productivity gap

  • Define productivity

  • Distinguish between public and private investment

  • With reference to the chart, compare productivity in the US with that of Europe

  • Using an AD/AS diagram, analyse the effects on the real economy of increased public and private investment

  • Define labour hoarding

  • Explain how labour hoarding could be a drag on productivity growth

  • Analyse the potential effects of AI on productivity

Gavin Clarke, Emmanuel College

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