Unformatted text preview: Know the difference between real and nominal values and be able to use the formulas for real GDP. Note: there are two variations. 1. Quantity is fixed. 2. Quantity changes. Know the two ways to adjust nominal GDP: inflation and population. Ch9. Know why small growth rates matter and be able to discuss the positive and negative aspects of economic growth (more jobs, pollution, etc). Know the five things that cause economic growth: # of resources, productivity, education, savings, technology (new growth theory). Also, the four keys to economic development: education, property right, allow for failure and trade. Know the aggregate production function model and be able to explain shifts vs. movements along as well as how it illustrates economic growth. Hope this helps. Good luck....
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- Spring '08
- Interest Rates, real GDP. Note