Econ Dev 5

Econ Dev 5 - ECON 314 Sept. 22 growth theories to...

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ECON 314 Sept. 22 growth theories to understand why countries differ dramatically in terms of standards of living we have to understand why they differ dramatically in long-term growth rates small differences in growth rates when accumulated over 40 years or more have much greater consequences for standards of living than any short-term business fluctuations (peaks and troughs of the business cycle) or even global economy events such as fuel / food / financial / debt crises if we learn about gvt policy options that have even the smallest effects on long-term growth rates we can contribute significantly to the improvements of standards of living across countries aggregate growth is probably the single most important factor affecting individual levels of income understanding the determinants of aggregate economic growth is the key to understanding how to increase the standards of living of individuals in the world, to less world poverty the importance of growth the great disparity between national income per capita levels across countries observed today
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This note was uploaded on 11/02/2011 for the course ECON 314 taught by Professor Rakovski during the Fall '11 term at McGill.

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Econ Dev 5 - ECON 314 Sept. 22 growth theories to...

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