Ch17 SH - Long-Run Growth The Growth Process: From...

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1 of 27 The Growth Process: From Agriculture to Industry The Sources of Economic Growth An Increase in Labor Supply Increases in Physical Capital Increases in Human Capital Increases in Productivity Growth and Productivity in the United States Sources of Growth in the U.S. Economy: 1929–1982 Labor Productivity: 1952 I–2007 IV Economic Growth and Public Policy in the United States The Size of the Multiplier Suggested Public Policies Growth and the Environment and Issues of Sustainability Long-Run Growth
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     The Growth Process:  From Agriculture to Industry The Sources of Economic Growth An Increase in Labor Supply Increases in Physical Capital Increases in Human Capital Increases in Productivity Growth and Productivity in the United States Sources of Growth in the U.S. Economy: 1929–1982 Labor Productivity: 1952 I–2007 IV Economic Growth and Public Policy in the United State: The  Size of the Multiplier Suggested Public Policies Growth and the Environment and Issues of Sustainability Long-Run Growth
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   economic growth   An increase in the total output  of an economy. modern economic growth   The period of rapid  and sustained increase in output that began in the  Western world with the Industrial Revolution.  Long-Run Growth
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4 of 27 The Growth Process: From Agriculture to Industry The production possibility frontier shows all the combinations of output that can be produced if all society s scarce resources are fully and efficiently employed. Economic growth expands society s production possibilities, shifting the ppf up and to the right. Economic Growth Shifts Society’s Production Possibility Frontier Up and to the Right
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5 of 27 Beginning in England around 1750, technical change and capital accumulation increased productivity significantly in two important industries: agriculture and textiles. More could be produced with fewer resources, leading to new products, more output, and wider choice. A rural agrarian society was very quickly transformed into an urban industrial society. From Agriculture to Industry: The Industrial Revolution
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Economic growth continues today, and while the underlying process is still the same, the face is different. Growth comes from a bigger workforce and more productive workers. Higher productivity comes from tools (capital), a better-educated and more highly skilled workforce (human capital), and increasingly from innovation and technical change (new techniques of production) and newly developed products and services. Growth in Modern Society
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This note was uploaded on 02/02/2012 for the course ECON 201 taught by Professor Shea during the Spring '08 term at Maryland.

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Ch17 SH - Long-Run Growth The Growth Process: From...

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