Impact of Increased Productivity on Economic Development

In a simplified economic model, productivity is often defined as the output produced per unit of input. This concept is crucial for understanding economic growth, as higher productivity can lead to increased output without a proportional increase in input. Consider the following statement regarding productivity:

'Improving productivity through better technology or processes can enhance the overall performance of an economy.'

Based on the statement, which of the following options best describes a direct impact of increased productivity on economic development?