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• That this is likely to lead to

economic growth or improved living

standards (or equivalent answer) (2

marks).

• Costs of production fall/efficiency

increases so more profit

• Removes inflationary pressure

• Allow answers based on

competitiveness.

• Encourages inward investment

• Effect on the current account

• Shift out in the PPF/increase in

productive potential

• Effect on employment levels

^^^^^^^^^^^^^

copied straight from a mark scheme

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Q: What is the Benefits of productivity?
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