GROWTHCLASS

GROWTHCLASS - 1 1 Economic Growth 3% real GDP per year 2%...

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Unformatted text preview: 1 1 Economic Growth 3% real GDP per year 2% real per capita GDP per year GDP/Pop Doubles every 36 years rule of 72 Doubled since 1970 PRODUCTIVITY Q=Q/L*L Q/POP=Q/L*L/POP Interrupted but ongoing 2 Growth is Relatively New 3 In the News? 2 4 Course Issues Quiz 5 answers/ Wiki Answers Investment Game ends at market close on Monday 6/29 Essential Questions/ Review Guide Study Groups- ? Possible Review Weds 7/1 A. 10am B 11am C 1 pm D 2pm Course Evaluations University, Mine, Post test Final Exam 40 fill-in 75 multiple choice Recession/ Financial Crisis 5 Application -Growth Rates of Real Per Capita GDP China in 2000 = U.S. in 1870 1.9 3,940 598 China 1900 1,960 26,460 23,550 34,260 2000 1.16 616 Pak 1900 2.8 1,256 Japan 1890 1.35 4,107 U.K. 1870 1.8 3,347 U.S. 1870 % ch start China catch-up 2% v 7% 2008 IMF figures (46,859)e ( n*.02 )=(5,933) e ( n*.07 ) -> 46859/5933 = e ( n*.07-.02 ) ->ln(46859/5933)= ln(e ( n*(.07-.02 ) )= ln(7.9)=n*.05=2.067/.05=41.3 years US: 46859e(41.3*.02)=107,033 6 If the long-run aggregate supply curve is vertical, how can we have economic growth? Shifts right over time Production function y=f(K,L,tech,natural resources) Increase in L, K, tech etc Vertical means Y not func of P Potential and Actual GDP 3...
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GROWTHCLASS - 1 1 Economic Growth 3% real GDP per year 2%...

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