Answer to Question #71093 in Macroeconomics for melisa florez

Question

The President of Lisavia (a small country) wants to increase productivity in his country. He has recently become aware of an economic principle that suggests that as a nation's productivity rises, its income will rise and therefore its standard of living will also rise. You have just been appointed as the economic advisor for Lisavia. Discuss three economic policies you might advise the President to pursue in order for his country to achieve this increased standard of living.

Answer 1

Economic productivity is the value of output obtained with one unit of input.
You can increase productivity of 1. production processes, 2. of the decision-making and governance processes as well 3. the external-to-the-firm productivity of the environment in which it operates.
Reference:
https://www.economicswebinstitute.org/glossary/prdctvt.htm#how