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●Follow up question- how much is $5/day pay is how muchtoday?●Question- Why are real wages so much more today?●Why economies grow in the Long Run○○Part A- Is economic growth “Zero-sum”?■Do some countries get rich by making other countries poorer?■Question- In your view, are some countries rich because they have taken wealth, income and resources from poor countries (i.e. is world growth zero-sum)?●Question- What average annual growth rate of the economy will make your life so radically different from the lives of your grandparents?○1%? 2%? 5%? 10%?
●Question: what average annual growth rate of the economy will make your life so radically different from the lives of your grandparents?○Question - how did Gdp per person in the US rise from $19.000 in 1961 to $55800 today and change everyone's lives?○Key terms■Y: real gdp (real production or income) ●$16.8 trillion in US■L: number of workers in a country’s economy (i.e. “labor”■Y/L: labor productivity- how much the average worker producesin a year■Pop: population for a country■Y/pop: GDP per person●$55,800 in US●( Y/ Pop ) = ( L/ Pop) * (Y / L) ○This equation is adjusted for inflation because it is using real gdp ○US in 1961 using this equation ^^ ■$19,000 = .29 * $65,500●Because baby boomers working and more women working○US in 2014 using the equation■$55,800 = .44 * $126,800●In the next 20 years or so the .44 is going to decline because many of the baby boomers will retire and stop inthe work force○Question - These data say that income per person ___ for ____ reason (s).