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
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…
Long-Run Economic Growth
What is Economic Growth
GDP Growth Rate (REAL GDP PER CAPITA)
Economic growth rate of 70
Potential GDP rises when
Increase in Land Labor Capital Entrepreneurship, increase in…
(new) GDP - (old) GDP / (old) GDP x 100
Number of years to double = 70/Growth Rate
labor force expands ... more capital stock... tech created
What is Economic Growth
Increase in Land Labor Capital Entrepreneurship, increase in…
GDP Growth Rate (REAL GDP PER CAPITA)
(new) GDP - (old) GDP / (old) GDP x 100
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
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…
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
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
Long Run Economic Growth
Rule of 70
Physical Capital (Productivity Gains)
Human Capital (Productivity Gains)
Technology (Productivity Gains)
Tells us how long it will take real GDP/capita to double ... #…
Manufactured resources workers have at their disposal. Ex: Ma…
Improvements in labor created by education, experience, and t…
Technical means for production of goods and services
Rule of 70
Tells us how long it will take real GDP/capita to double ... #…
Physical Capital (Productivity Gains)
Manufactured resources workers have at their disposal. Ex: Ma…
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…
16 terms
13: Long-Run Economic Growth
Rule of 70
labor productivity
physical capital
human capital
time it takes a variable that grows gradually over time to do…
output per worker
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 productivity
output per worker
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…
10: Long Run Economic Growth
Thomas Malthus
Capital Deepening
Diminishing Returns
Solow Growth Model
We're running out of land to cultivate --> population will die
faster growing magnitude of capital in production than in labor
smaller increases in output resulting from increasing one fac…
once capital deepening is done, technological innovation driv…
Thomas Malthus
We're running out of land to cultivate --> population will die
Capital Deepening
faster growing magnitude of capital in production than in labor
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)
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…
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…
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
Economic Growth, The Very Long Run
What factors can change in the very lo…
What factor must change in order for v…
What is the rule of 70?
What does the production function demo…
All factors, including the labour force, capital and technolo…
Technology: sustained technological change.
The number of years it will take for an economy to double in…
Capital investment becomes less effective at increasing outpu…
What factors can change in the very lo…
All factors, including the labour force, capital and technolo…
What factor must change in order for v…
Technology: sustained technological change.
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)
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.
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…
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…
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
Chap 26 : Long run economic Growth
factors that affect rate of economic g…
change in interest rate cause movement…
72 rule
an increase in real interest rate is u…
quantity of labour and physical capital, stock and quality of…
...
the approximate time taken for a variable to double ni value…
cause increase in the real interest rate leads households to…
factors that affect rate of economic g…
quantity of labour and physical capital, stock and quality of…
change in interest rate cause movement…
...
6 terms
Chapter 13 Long-run economic growth
Rule of 70
Main reasons for growth in productivity
Physical capital
Human capital
tells us how many years at a given annual rate of growth it t…
increase in physical capital, human capital, and technologica…
human-made resources such as buildings and machines
education and knowledge embodied in the workforce
Rule of 70
tells us how many years at a given annual rate of growth it t…
Main reasons for growth in productivity
increase in physical capital, human capital, and technologica…
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
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
5 terms
Module 37: Long-Run Economic Growth
Rule of 70
Labor Productivity or Productivity
Physical Capital
Human Capital
70 / that variable's annual growth rate = the time it takes a…
Output per worker
Consists of human made goods such as buildings and machines u…
The improvement in labor created by the education and knowled…
Rule of 70
70 / that variable's annual growth rate = the time it takes a…
Labor Productivity or Productivity
Output per worker
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
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…
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
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…
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…
Long/Short run Economic Growth, Potential GDP
Long Run
Short run
The Business Cycle
Peak
GDP is increasing
GDP can increase, decrease, or stay the same due to the busin…
Short term fluctuations in GDP
Expansion ends and beginning of recession
Long Run
GDP is increasing
Short run
GDP can increase, decrease, or stay the same due to the busin…
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
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…
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.
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…
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
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
Ch 9: Long-run Economic Growth
rule of 70
productivity
production function
technological process
doubling time = 70/rate of growth
output per worker
Y= F (A, K, C)... Y is output... A is technology... K is physical cap…
an advance in the technical means of production in goods and…
rule of 70
doubling time = 70/rate of growth
productivity
output per worker
CH 9 Long Run Economic Growth
Rule of 70
Physical capital
Human capital
Technological progress
The time it takes a variable that grows gradually over time t…
Consists of human-made resources such as buildings and machin…
Is the improvement in labor created by the education and know…
Is an advance in the technical means of the production of goo…
Rule of 70
The time it takes a variable that grows gradually over time t…
Physical capital
Consists of human-made resources such as buildings and machin…
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…
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