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Click to read the article and then answer the questions:
Europe faces ‘competitiveness crisis’ as US widens productivity gap
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Define productivity
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Distinguish between public and private investment
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With reference to the chart, compare productivity in the US with that of Europe
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Using an AD/AS diagram, analyse the effects on the real economy of increased public and private investment
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Define labour hoarding
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Explain how labour hoarding could be a drag on productivity growth
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Analyse the potential effects of AI on productivity
Gavin Clarke, Emmanuel College
