Unit 2: Introduction to Macroeconomics

Lesson 8a: Economic Growth

Something Interesting - Why are we studying this?

 

The economic growth that we are used to, 1%, 2,% 3%, 4%, maybe even, 7%, 8% or even 9% a year, is a recent phenomonon in the history of the world. Prior to the beginning of the 17th century, (around 1800) all parts of the world had similar living standards and these living standards had not changed much for thousands of years. See graph below.

Now we expect long term economic growth and living standards in different parts of the world to vary significantly.

Why? We will study this and other econmic growth issues in this lesson.

 

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Lesson 8a