7 terms

MODULE 37 Long-Run Economic Growth

The Rule of 70
the time it takes a variable that grows gradually over time to double is approximately 70 divided by that variable's annual growth rate.
Labor productivity, often referred to simply as productivity
output per worker.
Physical capital
consists of human-made goods such as buildings and machines used to produce other goods and services.
Human capital
is the improvement in labor created by the education and knowledge of members of the workforce.
Real GDP per Capita
the key statistic used to track economic growth. It is real GDP divide by population size.
Key source of growth
technology. technological advance and improvement in human capital go hand in hand
Why do economists focus on real GDP per capita as a measure of economic progress rather than on some other measure, such as nominal GDP per capita or real GDP?
because real gdp alone does not take the population size into account, which doesn't necessarily measure the living standard. nominal gdp does not take the changes of prices due to inflation into account.