10-25-07 - 10-25-07 Lecture Not in Book: Investment & Role...

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10-25-07 Q____ = GDP ~ Q Population L What we produce in terms of stock, goods, and services, old and new. We can look over time/across countries. Per Capita GDP measured by expenditures or income. Assigning Value – ask what they earned (income) Every Wage Every Rent Every Interest Every Profit Assigning Value – ask consumer what they paid for it (expenditures) Consumption Private Business Government Foreign Spending There is a close correlation between what is bought and what is made. Robinson Crusoe – him and three kids get shipwrecked…three days later…how well off are they?. ..depends on what they have made. GDP (L) Workers in country = Productivity increases Key to making economy grow. Q/L Key determinants of economic activity. Production Function Q = f (L,K,T) (Labor, Kapitol – capitol, Terra – Land and Natural Resources) Q = f (L ,K ,T ) L L L L Q = f (K ,T ) L L L Switzerland – High per Capita Increase (PCI) Productivity Incomes Expenditures Capital
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This note was uploaded on 04/18/2008 for the course ECON 202 taught by Professor Woroby during the Spring '08 term at Towson.

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10-25-07 - 10-25-07 Lecture Not in Book: Investment & Role...

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