TOPICS
- Definitions of EG
- EG in the US
- Modern EG
- Determinants of EG
- Causes of Productivity Growth
OUTCOMES
Give three definitions of
economic growth and illustrate them on the 5Es, PPC,
AS/AD, and LRAS models.
Use the 5Es, PPC, AS/AD, and LRAS
models to differenciate between "achieving our potential"
and "increasing our potential".
Explain why growth is a desirable
goal.
Define modern economic
growth , "great divergence", "leading country", and
"follower country".
Identify two main sources of
growth (more resources, more productivity) and apply them
to the growth history of the United States.
Explain and apply the "rule of
70."
Identify and explain the supply
factors (INCREASING the potential)
Identify and explain the demand,
and efficiency factors (ACHIEVING the
potential)
Differentiate between
ACHIEVING the potential and INCREASING the potential
using the PPC. AD/AD, and long-run AS models
According to the
authors, why is the real GDP per capita of the United
States in 2007 so much higher than that of other rich
countries?
Differentiate between production,
productive efficiency, and productivity
If the quantity of labor
increases, what happens to productivity? ANSWER: Nothing.
The quantity of labor will affect production, but
the quality of labor affects
productivity
What are the determinants of
productivity growth?
Identify and explain the arguments
for and against economic growth.
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