What Is Productivity?

What is the relationship between productivity, economic growth and monetary policy?

• Ok so I understand that productivity is the amount of output a worker can produce in an hour, so the more a worker can produce the more goods and services the economy can provide which leads to a higher standard of living and monetary policy comes in because when inflation is low it stimulates spending and investment which increases productivity which stimulates economic growth Am I right?? Also what are some recommendations brought forward by the central bank to enhance productivity???

• Answer:

  Increasing productivity means economic growth with declining price.Because it has caused a shift of the production function upward,or reducing cost. Increasing money supply and liquidity will improve productivity.No money,no R&D,no new investment.