Economic Growth

Vocabulary

business cycle

an interval of expansion and contraction in the economy

capital stock

goods or assets used to produce other goods

economic growth

the rate of increase in real GDP from one year to the next

human capital

the amount of education, training, healthcare and other non-physical assets that workers have

labor productivity

the measure of amount of real GDP by produced by a unit of labor

natural resource

a naturally existing form of physical capital that provides inputs to production, such as land, minerals, water, agricultural products, and forests

nominal GDP

the total gross domestic product expressed in current year prices

output

goods or services produced within a given time frame by a business or country

patent

the exclusive right of an inventor to use (or allow others to use) their invention, which creates a temporary monopoly, typically 20 years from the time of submission for the patent

physical capital

inputs into the production process, including machinery, tools, and buildings

property right

the ability of an individual to own and have command over resources such as capital and property in general

real GDP

the total output of the economy adjusted for inflation

real GDP per capita

measure of the output per person; or real GDP divided by the population

rule of 70

the rule that states a sum of money growing at X% per year will double in approximately 70/X years

technology

the tools, procedures, education, and knowledge used to transform resources into a final product