ECON 1020 Lecture 6: Macroeconomics Ch.6.docx

• School: University of Manitoba
• Department: Economics
• Course: ECON 1020
• Professor: R.Compton

Document Summary

Rule of 70: # of years to double real gdp = (about) 70/ % growth, eg. 5% annual growth rate = 14 years (cid:222) modern economic growth, historically recent phenomena where nations have experienced sustained increases in real gdp/capita, industrial revolution. Willing to work harder to acquire things if we know we can keep them (cid:222) (cid:222) (cid:222) (cid:222) (cid:222) (cid:222: patents and copyrights. Accounting for growth in canada: output growth in canada has been considerably greater in the last half century(cid:224)can be attributed to increases in the inputs of labour and capital, 2 other factors: (cid:222) (cid:222) (cid:222) New firms and increasing returns: more specialized inputs, spreading of development costs, simultaneous consumption, goods that multiple people can consume at once (eg. video games) vs. water bottles, network effects, use of something depends on the network of people you can use it with, learning by doing.