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Study sets matching "growth run economic"

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Study sets matching "growth run economic"

19 terms
Long-Run Economic Growth
rule of 70
labor productivity
physical capital
human capital
a mathematical formula that states that the time it takes rea…
-output per worker, also referred to as simply productivity…
-manufactured resources, such as buildings and machines... -grow…
the improvement in labor created by the education and knowled…
rule of 70
a mathematical formula that states that the time it takes rea…
labor productivity
-output per worker, also referred to as simply productivity…
20 terms
Long-run Economic Growth
(real GDP divided by the population si…
(often referred to simply as productiv…
human-made resources, such as building…
the improvement in labor created by th…
Real GDP per capita
Labor productivity
Physical capital
Human capital
(real GDP divided by the population si…
Real GDP per capita
(often referred to simply as productiv…
Labor productivity
42 terms
Long Run Economic Growth
Four Standard Goals
F
A
K
1. Unemployment = 5%... 2. Low Inflation - between 1 and 2%... 3. S…
Function
Autonomous
Capital
Four Standard Goals
1. Unemployment = 5%... 2. Low Inflation - between 1 and 2%... 3. S…
F
Function
16 terms
Long Run Economic Growth
real GDP per capita
Rule of 70
labor productivity
Reasons for growth in GDP
GDP/population... demonstrates standard of living
# of years for a variable to double=... 70 / annual growth rate…
output (GDP) per worker... sustains economic growth, only when i…
Increase in:... -physical capital... -human capital... -technological…
real GDP per capita
GDP/population... demonstrates standard of living
Rule of 70
# of years for a variable to double=... 70 / annual growth rate…
37 terms
Long-Run Economic Growth
Catch Up
Economic Growth Model
Foreign Direct Investment (FDI)
Foreign Portfolio Investment
How the economic growth model predicts that poor countries wi…
A model that explains growth rates in real GDP per capita ove…
The purchase or building by a corporation of a facility in a…
The purchase by an individual or a firm of stock or bonds iss…
Catch Up
How the economic growth model predicts that poor countries wi…
Economic Growth Model
A model that explains growth rates in real GDP per capita ove…
24 terms
Long-Run Economic Growth
In terms of long-run economic growth,…
As GDP increases, what generally happe…
How did the U.S. manage to produce six…
Rule of 70
How long you have been growing
It increases as well
A little bit at a time
Tells us how long it will take real GDP/capita to double => #…
In terms of long-run economic growth,…
How long you have been growing
As GDP increases, what generally happe…
It increases as well
11 terms
Long-Run Economic Growth
Rule of 70
labor productivity
physical captial
human captial
according to this rule, the time it takes a variable that gro…
output per worker
consists of human-made resources such as building and machines
the improvement in labor created by the education and knowled…
Rule of 70
according to this rule, the time it takes a variable that gro…
labor productivity
output per worker
14 terms
Long Run Economic Growth
rule of 70
labor productivity
productivity
physical capital
a mathematical formula that states that the time it takes rea…
output per worker; also referred to as simply productivity. i…
output per worker; a shortened form of the term labor product…
manufactured resources such as buildings and machines
rule of 70
a mathematical formula that states that the time it takes rea…
labor productivity
output per worker; also referred to as simply productivity. i…
26 terms
Long Run Economic Growth
long run economic growth
Real GDP per capita
Real GDP
# of years to double
sustained increase in output per capita
real GDP/population size; accounts for changes in population…
increase in RDGP and increase in population leaves living sta…
70/ annual growth rate of variable
long run economic growth
sustained increase in output per capita
Real GDP per capita
real GDP/population size; accounts for changes in population…
9 terms
long-run economic growth
real GDP per capita doubles
growth in productivity
total factor productivity
differences in growth rates of countries
70/annual growth rate
increase in physical capital/human capital, technological pro…
measures economic effects of technological progress
savings and investment spending, education, research and deve…
real GDP per capita doubles
70/annual growth rate
growth in productivity
increase in physical capital/human capital, technological pro…
10 terms
Long-Run Economic Growth
Power of Compounding:... Rule of 70
Labor Productivity
Physical Capitol
Human Capitol
70... __________... % growth
output per worker
Human made resources, buildings, machines
Improvement in labor created by education in the workforce
Power of Compounding:... Rule of 70
70... __________... % growth
Labor Productivity
output per worker
13 terms
ECON Long Run economic growth
economic growth model
RGDPpc across the world
defining variables
per-hr worked production function
*ppl want to know why certain countries dont grow as fast as…
1) rich (industrialized); NA, UK... 2) poor (developing); SA, Asia
-K = capital ... -L = Labor (hrs worked) ... -Y = RGDP
- Y/L = RGDP/Labor ... - t/L = Capital/Labor
economic growth model
*ppl want to know why certain countries dont grow as fast as…
RGDPpc across the world
1) rich (industrialized); NA, UK... 2) poor (developing); SA, Asia
17 terms
Macroeconomics-Long Run Economic Growth
long-run economic growth
labor productivity
capital
potential GDP
the process by which rising productivity increases the averag…
the quantity of goods and services that can be produced by on…
manufactured goods that are used to produce other goods and s…
the level of real GDP attained when all firms are producing a…
long-run economic growth
the process by which rising productivity increases the averag…
labor productivity
the quantity of goods and services that can be produced by on…
5 terms
Module 37: Long-run Economic Growth
Rule of 70
labor productivity (productivity)
physical capital
human capital
a mathematical formula that states that the time it takes rea…
output per worker. (p. 372)
human-made goods such as buildings and machines used to produ…
the improvement in labor created by the education and knowled…
Rule of 70
a mathematical formula that states that the time it takes rea…
labor productivity (productivity)
output per worker. (p. 372)
46 terms
10: Long Run Economic Growth
long-run economic growth
rule of 70
labor productivity
capital
process by which rising productivity increases average standa…
(70/growth rate) to calculate amount of time needed for rGDP…
quantity of goods and services that can be produced by one wo…
manufactured goods that are used to produce other goods and s…
long-run economic growth
process by which rising productivity increases average standa…
rule of 70
(70/growth rate) to calculate amount of time needed for rGDP…
17 terms
Macroeconomics-Long Run Economic Growth
long-run economic growth
labor productivity
capital
potential GDP
the process by which rising productivity increases the averag…
the quantity of goods and services that can be produced by on…
manufactured goods that are used to produce other goods and s…
the level of real GDP attained when all firms are producing a…
long-run economic growth
the process by which rising productivity increases the averag…
labor productivity
the quantity of goods and services that can be produced by on…
17 terms
Macro: Long Run Economic Growth
Living standards and Growth rates arou…
Rule of 70
Y =
L =
They are VASTLY different
70 / annual growth rate of variable
real GDP = quantity of output produced
quantity of labor
Living standards and Growth rates arou…
They are VASTLY different
Rule of 70
70 / annual growth rate of variable
Module 37: Long-run Economic Growth
Rule of 70
Productivity
Three main reasons for growth in produ…
Physical capital
# of years it takes for a variable to double = (70/annual gro…
Output/worker.
Physical capital, human capital, technology.
Consists of human-made goods such as buildings and machines u…
Rule of 70
# of years it takes for a variable to double = (70/annual gro…
Productivity
Output/worker.
13 terms
Chapter 9: Long-Run Economic Growth
Rule of 70
Labor Productivity (Productivity)
Physical Capital
Human Capital
the time it takes a variable that grows gradually over time t…
output per worker
consists of human-made resources such as buildings and machines
improvement in labor created by the education and knowledge e…
Rule of 70
the time it takes a variable that grows gradually over time t…
Labor Productivity (Productivity)
output per worker
14 terms
Chapter 11: Long-Run Economic Growth
industrial revolution
economic growth model
labor productivity
technological change
the application of mechanical power to the production of good…
a model that explains growth rates in real GDP per capita ove…
the quantity of goods and services that can be produced by on…
a change in the quantity of output a firm can produce using a…
industrial revolution
the application of mechanical power to the production of good…
economic growth model
a model that explains growth rates in real GDP per capita ove…
12 terms
Chapter 13: Long-Run Economic Growth
Rule of 70
Physical Capital
Human Capital
Technology
Tells us the time it takes a variable that grows gradually ov…
Consists of human-made resources such as buildings and machines
The improvement in labor created by the education and knowled…
The technical means for the production of goods and services
Rule of 70
Tells us the time it takes a variable that grows gradually ov…
Physical Capital
Consists of human-made resources such as buildings and machines
22 terms
Economics-Chapter 9-Long-Run Economic Growth
From 1900 to 2010, real GDP per capita…
Number of years for variable to double…
According to the________________, the…
_____________________, occurs only whe…
1.9%
70/(Annual Growth Rate of Variable)
Rule of 70
Sustained economic growth
From 1900 to 2010, real GDP per capita…
1.9%
Number of years for variable to double…
70/(Annual Growth Rate of Variable)
13 terms
CH 9: Long-Run Economic Growth
Rule of 70
labor productivity (productivity)
physical capital
human capital
this calculates the time it takes a variable that grows gradu…
the amount of output per worker
this consists of human-made resources such as buildings and m…
the improvement in labor created by the education and knowled…
Rule of 70
this calculates the time it takes a variable that grows gradu…
labor productivity (productivity)
the amount of output per worker
5 terms
Module 37: Long-run Economic Growth
Rule of 70
labor productivity (also called simply…
physical capital
human capital
tells us that the time it takes a variable that grows gradual…
output per worker
consists of human-made goods such as buildings and machines u…
the improvement in labor created by the ductation and knowled…
Rule of 70
tells us that the time it takes a variable that grows gradual…
labor productivity (also called simply…
output per worker
10 terms
Chapter 9. Long Run Economic Growth
Rule of 70
Labor Productivity
Physical Capital
Human Capital
formula that tells us how long it takes real GDP per capita t…
output per worker
consists of human-made resources such as buildings and machines
Improvement in labor created by the education and knowledge e…
Rule of 70
formula that tells us how long it takes real GDP per capita t…
Labor Productivity
output per worker
21 terms
Chapter 6: Long Run Economic Growth
rate of output growth comes from
productivity slowdown could come from
Solow Model illustrates
output/worker
productivity growth, capital and labor inputs
measurement problems, change in legal/human environment, incr…
the relationship between the standard of living and saving ra…
yt= Yt/Nt
rate of output growth comes from
productivity growth, capital and labor inputs
productivity slowdown could come from
measurement problems, change in legal/human environment, incr…
31 terms
Macroeconomics Chapter 6: Long-Run Economic Growth
the growth accounting equation
Contributors of Output Growth: can be…
Steps of measuring contribution of eac…
What are possible causes of the declin…
...
1. Productivity growth... 2. capital input growth... 3. Labor input…
1. Get data on ∆Y/Y, ∆K/K, and ∆N/N & adjust for quality chan…
...
the growth accounting equation
...
Contributors of Output Growth: can be…
1. Productivity growth... 2. capital input growth... 3. Labor input…
29 terms
Part 3: Long-Run Economic Growth
Capital-Accumulation Equation
Capital Dilution
Capital-Labor Ratio
Convergence
An equation that says the the change in the capital stock equ…
Growth in the labor force that leads to less capital per worker
The amount of capital per worker; plays a very prominent role…
Countries with different initial levels of per capita income…
Capital-Accumulation Equation
An equation that says the the change in the capital stock equ…
Capital Dilution
Growth in the labor force that leads to less capital per worker
18 terms
Chapter 9: Long Run Economic Growth
productivity
2%
technological, capital
declining corporate profits, weak tren…
= output / labor... output made in a given hour
productivity growth rate of >______ indicates quickly rising…
recent productivity gains are more a function of ________ adv…
list 4 things effecting low capital spending
productivity
= output / labor... output made in a given hour
2%
productivity growth rate of >______ indicates quickly rising…
12 terms
Chapter 9 - Long Run Economic Growth
labor productivity
physical capital
human capital
technological progress
output per worker
manufactured resources
improvement in labor created by the education and knowledge e…
advance in technical means of production
labor productivity
output per worker
physical capital
manufactured resources
10 terms
Long-Run Economic Growth Ch 7.
Economic growth model
labour productivity
technological change
per-worker production function
A model that explains growth rate in real gdp per capita with…
The quantity of goods and services that be produced by one wo…
1. better equipment... 2. increase human capital... 3. better manag…
the relationship between real GDP/hours work vs. capital/hour…
Economic growth model
A model that explains growth rate in real gdp per capita with…
labour productivity
The quantity of goods and services that be produced by one wo…
66 terms
Chapter 9: Long-Run Economic Growth
Japan since WWII
key statistic to track economic growth
why GDP?
why real GDP?
most dramatic example of long-run economic growth; sustained…
real GDP per capita; real GDP divided by population size
measures total value of an economy's production of final good…
separates changes in the quantity of goods and services from…
Japan since WWII
most dramatic example of long-run economic growth; sustained…
key statistic to track economic growth
real GDP per capita; real GDP divided by population size
15 terms
Chapter 9: Long-Run Economic Growth
Labor Productivity
Physical Capital
Human Capital
Technological progress
Output per worker
human-made resources, such as buildings and machines
the improvement in labor created by the education & knowledge…
an advance in the technical means of production in goods & se…
Labor Productivity
Output per worker
Physical Capital
human-made resources, such as buildings and machines
14 terms
econ ch. 11 long-run economic growth
industrial revolution
economic growth model
labor productivity
technological change
application of mechanical power to production of goods, begin…
model that explains growth rates in real GDP per capita over…
quantity of g/s that can be produced by one worker or by one…
a change in the quantity of output a firm can produce using a…
industrial revolution
application of mechanical power to production of goods, begin…
economic growth model
model that explains growth rates in real GDP per capita over…
11 terms
Chapter 9: Long-Run Economic Growth
Which is true regarding output per wor…
According to the text, the "new growth…
Long-run economic growth requires:
An economy wants to increase its level…
An aggregate production function indicates how output per wor…
the importance of innovators' ability to establish monopolies…
political stability and some respect for property rights.
when domestic residents spend less of their income on consump…
Which is true regarding output per wor…
An aggregate production function indicates how output per wor…
According to the text, the "new growth…
the importance of innovators' ability to establish monopolies…
39 terms
Macro Chapter 5: Long-Run Economic Growth
short-run growth
long-run growth
standard of living
real GDP
changes to real GDP from quarter to quarter, or annually
changes to real or per capita GDP from decade to decade or ge…
GDP per capita = real GDP/population
the goods and services produced in a year
short-run growth
changes to real GDP from quarter to quarter, or annually
long-run growth
changes to real or per capita GDP from decade to decade or ge…
62 terms
ECON 202: Long Run Economic Growth
Why do we use real GDP per capita? We…
empirically, the typical family income…
The U.S.'s average annual growth rate…
rule of 70...
overstate
per capita
2%
... tells use how long it will take real GDP/capita to double…
Why do we use real GDP per capita? We…
overstate
empirically, the typical family income…
per capita
Ch 9: Long-Run Economic Growth
real GDP per capita
total value, production, final
separate changes in the quantity of go…
changes in the population
what is the key statistic used to track economic growth?
GDP measures the t______ v______ of an economy's p___ of f___…
Why do we use REAL GDP when tracking economic growth?
We focus on real GDP PER CAPITA because we want to isolate th…
real GDP per capita
what is the key statistic used to track economic growth?
total value, production, final
GDP measures the t______ v______ of an economy's p___ of f___…
15 terms
Chapter 11 Long run Economic Growth
Industrial Revolution
Compounding
Technological change
3 main sources of tech change
Application of mechanical power to the production of goods; b…
Magnifies small differences in interest rates over long perio…
Change in quantity of output a firm can produce using a given…
Better machinery ... Increases in human capital ... Better means of…
Industrial Revolution
Application of mechanical power to the production of goods; b…
Compounding
Magnifies small differences in interest rates over long perio…
13 terms
Ch 9: Long-Run Economic Growth
How is growth measured?
Rule of 70
Source of Long-Run Growth
Growth in Productivity
Real GDP per capita to eliminate the effects of changes in th…
A mathematical formula that tells us how long it takes real G…
When labor productivity (output per worker), or productivity…
1. Increase in physical capital - human-made resources such a…
How is growth measured?
Real GDP per capita to eliminate the effects of changes in th…
Rule of 70
A mathematical formula that tells us how long it takes real G…
13 terms
econ ch. 9: long-run economic growth
rule of 70
labor productivity/productivity
physical capital
human capital
the time it takes a variable that grows gradually over time t…
output per worker.
consists of human-made resources such as buildings and machin…
the improvement in labor created by the education and knowled…
rule of 70
the time it takes a variable that grows gradually over time t…
labor productivity/productivity
output per worker.
22 terms
CH10: Long-run economic growth
Economic growth
Industrial revolution
Compounding
What is important in the long run?
Increase the living standards
The application of mechanical power to the production of good…
Magnifies even small differences in interest rates over long…
In the long run, small differences in economic growth rates r…
Economic growth
Increase the living standards
Industrial revolution
The application of mechanical power to the production of good…
21 terms
Macro Chapter 9: Long Run Economic Growth
real GDP per capita
GDP
real GDP
long-run economic growth
real GDP divided by the population size ... isolate the effects…
measures the total value of an economy's production of final…
separate changes in the quantity of goods and services from t…
normally a gradual process in which real GDP per capita grows…
real GDP per capita
real GDP divided by the population size ... isolate the effects…
GDP
measures the total value of an economy's production of final…
17 terms
Chapter 9 Long-Run Economic Growth
Rule of 70
Number of years for variable to double =
Labor productivity
Labor productivity is also called
A mathematical formula that tells us how long it takes real G…
70/Annual growth rate of variable
Output pe worker
productivity
Rule of 70
A mathematical formula that tells us how long it takes real G…
Number of years for variable to double =
70/Annual growth rate of variable
13 terms
Chapter 9: Long Run Economic Growth
rule of 70
labor producitivity
physical capital
human capital
time it takes a variable that grows gradually over time to do…
output per worker
consists of human-made resources such as buildings and machines
improvement in labor created by the education and knowledge e…
rule of 70
time it takes a variable that grows gradually over time to do…
labor producitivity
output per worker
18 terms
Chapter 9 -- Long Run Economic Growth
Growth Rates
Rule of 70
Labor productivity
What leads to productivity?
any large increase in real GDP per capita must be the result…
shows doubling time;... (70) / (annual growth rate variable)
the output per worker; sustained economic growth occurs only…
a. Increase in physical capital... b. Increase in human capital…
Growth Rates
any large increase in real GDP per capita must be the result…
Rule of 70
shows doubling time;... (70) / (annual growth rate variable)
13 terms
Chapter 22 Long run economic growth
ecoomic growth model
labor productivity
technological change
human capital
a model that explains growth rates in real GDP per capita ove…
the quantity of goods and services that can be produced by on…
a change in the quantity of output a firm can produce using a…
the accumulated knowledge and skills that workers acquire fro…
ecoomic growth model
a model that explains growth rates in real GDP per capita ove…
labor productivity
the quantity of goods and services that can be produced by on…
Chapter 10: Long Run Economic Growth
Savings-investment spending identity
Budget surplus
Budget deficit
Budget balance
savings and investment spending are always equal... Total income…
the difference btween tax revenue and govenment spending when…
the difference between tax revenue and government spending wh…
the difference btween tax revenue and government spending
Savings-investment spending identity
savings and investment spending are always equal... Total income…
Budget surplus
the difference btween tax revenue and govenment spending when…
13 terms
Chapter 24 - Long Run Economic Growth
Rule of 70
Labor Productivity
Physical Capital
Human Capital
The time it takes a variable that grows gradually over time t…
Sometimes referred to as productivity. Is output per worker.
Consists of human made resources such as buildings and machin…
The improvement in labor created by the education and knowled…
Rule of 70
The time it takes a variable that grows gradually over time t…
Labor Productivity
Sometimes referred to as productivity. Is output per worker.
8 terms
Chapter 9 : Long - Run Economic Growth
What are the determinants of Long- Run…
What is the aggregate production funct…
What is the Rule of 70
What is the law of diminishing returns?
growth of productivity, demographic changes, and labor force…
shows how productivity depends on the quantity of physical ca…
tells how long it takes real GDP per capita to double... Number…
when the amount of human capital per worker and the state of…
What are the determinants of Long- Run…
growth of productivity, demographic changes, and labor force…
What is the aggregate production funct…
shows how productivity depends on the quantity of physical ca…
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