What is a potential consequence of an increase in a nation's productivity?

An increase in a nation's productivity typically leads to economic growth. When a country becomes more productive, it means that it can produce more goods and services with the same amount of resources. This enhancement in efficiency can lead to higher output, which can stimulate various aspects of the economy.

As productivity rises, businesses often experience increased profits, which can lead to investments in new technologies, expansion, and hiring. Additionally, higher productivity can result in lower prices for consumers, increasing overall consumption and stimulating demand. This cycle of increased production, consumption, and investment contributes to broader economic growth as the standard of living improves and more resources become available for further development and innovation.

In this context, this choice highlights the most direct and significant benefit of increased productivity rather than the potential negative consequences or shifts in sectoral dynamics that other options might suggest.