Econ Exam Notes - 1 To calculate how long it will take GDP...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. To calculate how long it will take GDP per capita to double, divide the number 70 by the annual growth rate 2. Adam Smith’s theory of scale of the market suggests that the size of a market is important for economic development 3. Joseph Schumpeter’s theory of creative destruction suggests that firms will try to innovate to earn higher profit 4. The organization that officially dates recessions is the National Bureau of Economic Research 5. The largest component of national income is compensation of employees (wages and benefits) 6. The government department that produces the national income and product accounts is the Department of Commerce 7. Natural rate of unemployment consists of frictional and structural unemployment 8. The chain-weighted price index for GDP does not include used goods or imported goods 9. Creditors do not gain from unanticipated inflation 10. Robert Solow- Technological progress 11. Saving and depreciation are the two factors that determine how the stock of capital changes over time 12. New growth theory suggests that investment in comprehensive education in a developing country will lead to permanent increases in the rate of technological progress 13. Gross investment is the total amount of new private investment purchases
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern