Macroeconomics Chapter 7

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Output

A x F(L,K,H,N) A= Total output equals technology L= Times a function of available labor K= Physical Capital H= Human Capital N= Natural resources

Catch-up effect

Countries with smaller starting levels of capital experience larger benefits from increased capital, allowing these countries to grow faster than countries with abundant capital

Investment in human capital

Improvements to the labor force from investments in skills, knowledge, and the overall quality of workers and their productivity

Economic Growth

In Calculating economic growth, we might measure real GDP or real GDP per capita.

Production Function

Measures the output that is produced using various combinations of inputs and a fixed level of technology -It is a mathematical function that relates the maximum amount of output that can be obtained from a given number of inputs - generally capital and labor.

Economic Growth

Plays a very powerful role in how people live and how standards of living change over time

real GDP per capita

Real GDP divided by population. Provides a rough estimate of a country's standard of living

Compounding

The ability of growth to build on previous growth. It allows a value such as GDP to increase significantly over time as income increases on top of previous increases in income

Capital-to-labor ratio

The capital employed per worker. A higher ratio means higher labor productivity, and as a result, higher wages

Total factor productivity

The portion of output produced that is not explained by the number of inputs used in production

Infrastructure

The public capital of a nation, including transportation networks, power plants, public education institutes, and other intangible resources such as protection of property rights and a stable monetary environment

Real GDP

The total value of final goods and services produced in a country in a year measured using prices in a base year

Rule of 70

There is an easy way to approximate the number of years for an amount to double in value by using the rule of 70 x= 70 / Growth rate

Diminishing returns to capital

Each additional unit of capital provides a smaller increase in output than the previous unit of capital


संबंधित स्टडी सेट्स

Organizational Behavior Managing People and Organizations

View Set

Lec 3, pt 1: HA Assessment Techniques

View Set

ch. 13 Medical Math, ch. 7:4 Skeletal System, ch. 7 Anatomy and Physiology

View Set