Econ 100 Class Notes starting with Lecture 10

Econ 100 Class Notes starting with Lecture 10 - Econ 100...

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Econ 100 Class Notes on Lecture 10 (GDP) 1. Potential GDP or maximum capacity GDP -As the years go by, more workers will be available and are capable of more production. -GDP depends on quantity and quality of labor. 2. Quantity of labor depends on: 1.) Population growth a: immigration b: natural growth 2.) Labor Force participation a: retirement practices b: female participation c: demographic age profile 3.) Average workweek a: part-time b: over-time 3. Quality of Labor (Productivity) = value of output per hour of work. 4. Productivity has a cyclical element as it rises during early part of expansion and falls during recession. 5. Productivity depends on: 1.) amount of physical capital available per worker which depends on business fixed investment and government provided infrastructure 2.) Amount of human capital depends on education, training, and experience. 3.) Amount of technology capital refers to research. 4.) Management practices
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This note was uploaded on 04/02/2008 for the course ECON 100 taught by Professor Hayworth during the Winter '08 term at Eastern Michigan University.

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Econ 100 Class Notes starting with Lecture 10 - Econ 100...

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