Handout4 - Lecture 4 Overview Economic Growth Defined...

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Lecture 4 Overview 1 Economic Growth Defined Economic Growth: Real GDP per capita : Example: (2008) (base year 2006, US$) Rate of Economic Growth: Example : RGDP: RGDP per cap: Economic Growth Around the World Modern Economic Growth : Growth Facts:
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Econ 1102-025 In particular, suppose a country has a growth rate g (and we expect them to keep growing at exactly that growth rate. And this year, they have some amount of GDP, let’s say GDP_0. Growth Rate Formula: General Growth Rate Formula: Example: Ingredients of Modern Growth There are several things that encourage growth: Production Factors 1. 2. 3. Production Technology 1. 2. Demand 1. Production Possibilities Frontier (PPF)
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Example: Suppose a country has 300 machines to make robots, 100 workers, who each work 2 hours, and makes 200 robots. Capital per worker: Labor productivity : Goods Robots T-Shirts Plan A Plan B Plan C Plan D Plan E We can graph this information and get: We make the following assumptions about the points of data: 1. 2.
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This note was uploaded on 01/28/2012 for the course ECON 1102 taught by Professor Someguy during the Spring '07 term at Minnesota.

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Handout4 - Lecture 4 Overview Economic Growth Defined...

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