{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Exam 2 notes - Chapter 9*Economic growth increases in per...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 9 *Economic growth – increases in per capita real GDP measured by its rate of change per year; a shift up and to the right on the production possibilities curve; benefits: reductions in illiteracy, poverty, illness and increases in life spans and political stability; costs: environmental pollution, alienation, and urban congestion; small changes in growth rates lead to large differences in real GDP over time *Factors of economics growth – the rate of saving, the rate of growth of capital, and the rate of growth of labor productivity *Labor productivity – total real domestic output (real GDP) divided by the number of workers (output per worker); has grown 3 times faster than the rate of growth of productivity in the rest of the economy since 1950. *Saving – a higher rate of saving eventually mean higher living standards in the long run, all other things held constant *Paul Romer – economist that believes that economic growth can continue as long as we keep coming up with new ideas *New growth theory – a theory of economic growth that examines the factors that determine why technology,
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online