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Unformatted text preview: 8. Diminishing returns to physical capital- Holding the amount of human capital and the state of technology fixed, each succession increase in the amount of physical capital leads to a smaller increase in productivity 9. Growth accounting- estimates the contribution of each major factor in the aggregate production function to economic growth 10. Total factor productivity- the amount if output that can be achieved with a given amount of factor inputs 11. Infrastructure- Roads, power lines, ports, information networks and other underpinnings for economic activity 12. Research and development- spending to create and implement new technologies 13. Convergence hypothesis- International differences in real GDP per capita tend to narrow over time...
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This note was uploaded on 01/22/2012 for the course ECON 101 taught by Professor Smith during the Spring '11 term at Art Inst. Boston.
- Spring '11