Class Notes - 10-3-07

Class Notes - 10-3-07 - Macroeconomics Class Notes 10/3/07...

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Macroeconomics – Class Notes – 10/3/07 CHAPTER 12: Production and Growth (COMPLETED) CH. 12 OUTLINE World Economic Growth Productivity and Its Determinants Economic Growth and Public Policy PRODUCTION AND GROWTH Standard of living depends on productivity Shapr changes in standard of living over time WORLD LEADERS CHANGE Ancient Civilizations Checklist: o Egypt o Italy o Greece o China o Iran o India o Iraq WORLD ECONOMIC GROWTH Standard of living measured by per capital real GDP Developed countries GDP per capita is 10 to 20 times greater than poor ones Productivity is key! THE RULE OF 70 Rule of 70: A variable doubles in (70 divided by annual growth rate) years. If Growth rate: o 1%, doubles in 70 years o 2%, doubles in 35 years o 5%, doubles in 14 years Example o $5,000 invested at 7% doubles in 10 years o 70 divided by 7 = 10
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Productivity and Its Determinants Productivity goods and services a worker produces per hour
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This note was uploaded on 04/15/2008 for the course ECON 101 taught by Professor Golden during the Fall '07 term at Allegheny.

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Class Notes - 10-3-07 - Macroeconomics Class Notes 10/3/07...

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