which will magnify small differences in interest rates, but for the most part affect the standards of living.8.Be able to explain how real GDP per person is determined by the percent of the population that works and labor productivity (i.e. Y/pop = (L/pop)•(Y/L)) (notes)a.In order to find a real GDP per person, you would use the equation, Y/pop (real GDP/ population), which would equal the equation (L/pop)(Y/L)...i.The part of the equation, (Y/L) represents labor productivity

which represents labor productivity of a worker. ii.In this given equation, L, is the percent of the population that works in an economy. 9.Be able to explain how to use the "per-worker production function" graph and the corresponding equation. (Ch. 11.2 and notes)a.The “per-worker production function” graph is increasing at a decreasing rate, so as you move to the right the function is decreasingb.Y/L is on the Y axis (this helps us understand growth) and K/L is on the x axisc.Y/L=A(K/L)^.3 … with A being “TFP” (total factor productivity- measures all types of capital d.Since the past, the United States Per-worker production graph hasmoved up and to the right. When this function moves up that means that there is an increase in technology and more capital perworker (knowledge or machinery)10.Be able to explain the impact of the capital to labor ratio and technology on economic growth via the per-worker production function. (Ch. 10.1, 11.2, and notes)11.Be able to explain the fundamental role of markets and institutions in economic growth. (Ch. 2.3, Ch. 11.5, and notes)12.Know the typical rates of economic growth and real per capita GDP for the countries thatwe've studied. (notes)Article 1- 1. What was the unemployment rate for February and how many jobs (called “non‐farm payrolls”) were added? Is the number of jobs added comparable to what has

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- Fall '10
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- Economics, Macroeconomics, Inflation, Interest Rates