GROWTHCLASS

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

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 03/24/2011 for the course ECON 103 taught by Professor Lin during the Summer '08 term at Rutgers.

Page1 / 8

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

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online