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The Productivity Curve | Finance Train

Economics

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CFA Level 2: Economics - Introduction

Economic Growth

Changes in Productivity: The One-Third Rule

The Productivity Curve

Economic Growth Theories

Government Regulation, Deregulation, and Regulatory Behaviour

Gross Domestic Product (Measuring Economic Activity)

International Trade & Trade Restrictions

Balance of Payments

Foreign Exchange Rate Systems and Parity Relationships

Foreign Exchange Floating Rate Systems

Fixed Exchange Rate Systems

Overview of Currency Markets

Forward Exchange Rates

Interest Rate Parity

Purchasing Power Parity (PPP)

International Fisher Relation

Uncovered and Covered Interest Rate Parity Relationship

Forecasting Exchange Rates

CFA Level 2 Economics – Recommendations

Lesson 4 of 20

The Productivity Curve

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Changes in Productivity: The One-Third Rule

Economic Growth Theories

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The productivity curve places Real GDP/Labor Hour (or productivity) on the y-axis and Capital per Hour of Labor on the x-axis.

When physical capital (factories, equipment, etc.) increases, a country moves upward along the productivity curve.
Technology advances shifts the productivity curve upward.