Principles of Economics- Mankiw (5th) 514

Principles of Economics- Mankiw (5th) 514 - 532 PA R T N I...

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532 PART NINE THE REAL ECONOMY IN THE LONG RUN relative to others. One country that has fallen behind is the United Kingdom. In 1870, the United Kingdom was the richest country in the world, with average income about 20 percent higher than that of the United States and about twice that of Canada. Today, average income in the United Kingdom is below average income in its two former colonies. These data show that the world’s richest countries have no guarantee they will stay the richest and that the world’s poorest countries are not doomed forever to remain in poverty. But what explains these changes over time? Why do some countries zoom ahead while others lag behind? These are precisely the questions that we take up next. QUICK QUIZ: What is the approximate growth rate of real GDP per person in the United States? Name a country that has had faster growth and a country that has had slower growth. PRODUCTIVITY: ITS ROLE AND DETERMINANTS
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.

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