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What is the aggregate production function of productivity?

An aggregate production function (PF) relates total output to total employment, assuming all other factors of production and technology are fixed. It shows that increases in employment lead to increases in output but at a decreasing rate.

What do you mean by aggregate productivity?

We define aggregate productivity growth as output growth minus input growth:(4) If there are economic profits, then our measure of productivity differs from Solows because input weights do not sum to one.

What is the concept of aggregate production?

Definition: The aggregate production function is the maximum output that can be produced given the quantities of the factors of production. Y = F(K, N).

What is aggregate labor productivity?

Aggregate labor productivity is a central indicator of an economys economic development and a wellspring of living standards. Somewhat controversially, many macroeconomists see productivity as a primary driver of fluctuations in economic activity along the business cycle.