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Title: PRODUCTIVITY GROWTH HYPTHESIS

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Subject: Business
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Date: October 21, 2002
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Length: 3 / 857
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When the gap between rich and poor increases (an increase in I.R. form 1980-90, resulting in a larger ratio on the column I.R. 1990/1980), so does the population's eagerness to work, therefore increasing the Productivity Growth. Since when one variable goes up the other also goes up, there is a positive (or direct) correlation between the two...

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Since when one variable goes up the other also goes up, there is a positive (or direct) correlation between the two. Mainstream economists use deductive reasoning to deduce that there exists a positive correlation between the two factors. In short, their hypothesis is that when the Income Ratio increases, the Productivity Growth also increases, since people are more motivated...

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