2301chap15 - Chapter 7 Economic Growth Learning Outcomes...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 Economic Growth
Background image of page 1

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

View Full Document Right Arrow Icon
Learning Outcomes How much economic growth differs around the world. Why productivity is the key determinant of a country’s standard of living. The factors that determine a country’s productivity. How a country’s policies influence its productivity growth.
Background image of page 2
Selected Growth Rates Country Real GDP at beginning of period, 1870 Real GDP at end of period, 2006 Growth Rate (%) UK $4,502 $35,580 1.532 US $3,752 $44,260 1.831 Canada $2,224 $34,610 2.038 In 1870, the UK was the richest country in the world, with average income about 20% greater than that of the US and more than twice that of Canada. Today, average income in the UK is 20% below that of the US and similar to Canada’s. Growth rate, g, is computed as: g = [(FV / PV) 1/n – 1] • 100 where g is growth rate, FV is ending value, PV is beginning value, and n is number of years.
Background image of page 3

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

View Full Document Right Arrow Icon
Measuring Gowth Compound Growth FV = PV(1 + g) n (1 + g) n = FV / PV n[ln(1 + g)] = ln(FV / PV) n = ln(FV / PV) / ln(1 + g)
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 11

2301chap15 - Chapter 7 Economic Growth Learning Outcomes...

This preview shows document pages 1 - 5. Sign up to view the full document.

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