# Productivity

*Macro & Economy — Finicade finance glossary*

Productivity is output per unit of input, usually per hour worked, and it is the only sustainable source of rising living standards. Real wages track it closely over long periods, which is why a productivity slowdown shows up as stagnant pay a decade later. Total factor productivity captures the part not explained by more capital or more labour — effectively the measure of how much better we've got at combining them.

**Also known as:** labour productivity, total factor productivity, TFP

**Related terms:** [Solow Growth Model](https://finicade.com/glossary/solow-growth-model), [Real Wages](https://finicade.com/glossary/real-wages), [GDP (Gross Domestic Product)](https://finicade.com/glossary/gdp), [Aggregate Supply](https://finicade.com/glossary/aggregate-supply), [Economies of Scale](https://finicade.com/glossary/economies-of-scale)

**Taught in:** Macro & Markets — Technological Progress & Growth

Source: https://finicade.com/glossary/productivity