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Unformatted text preview: Mankiw, Principles of Economics Prepared by Moon Young BAEK Yonsei University, Economics 1 Chapter 25 Production and Growth 25.1 Introduction z We discussed how economists measure macroeconomic quantities and prices. In Chap. 25, we study the forces that determine these variables. ¡ The level of real GDP is a good gauge of economic prosperity and ¡ The growth of real GDP is a good gauge of economic progress. z We focus on the long-run determinants of the level and growth of real GDP. 25.2 Economic growth around the world. z Why does each country’s growth rate diverse in the world? 25.3 Productivity: its Role and Determinants z The large variation in living standards around the world can be summarized in a single word – productivity . ¡ Definition of productivity: the amount of goods and services produced from each hour of a worker’s time Mankiw, Principles of Economics Prepared by Moon Young BAEK Yonsei University, Economics 2 z Basically, an economy is able to consume what it produces, and its living standards are related to the product ability of the economy. ¡ The level of living standards decided by the productivity; and ¡ The growth in living standards decided by the growth in productivity....
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This note was uploaded on 04/05/2010 for the course ECONOMICS 2009 taught by Professor Lee during the Spring '09 term at Yonsei University.
- Spring '09