MGAB01H3 Lecture Notes - Lecture 12: Growth Accounting, Accounting Equation, Longrun

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: Douglas Kong

Document Summary

Real gdp per capita varies across countries. Some countries grow faster while some countries grow slower. Real gdp per capita growth rate varies across time. Real gdp per capita is a commonly used measure of long-run economic growth because: It measures the value of the country"s final products and income. It ignores the effects of a rising price level on output, only quantity produced is a variable. It isolates the effect of changes in population on output, population does not have an effect on gdp per capita, china/canada. When looking at economic growth, we also look at the growth rate of real. Gdp per capita because it tells us how fast our income is changing over time. Rule of 70 a simple rule that tells us how many years it takes a variable to double. # of years for a variable to double = Note: the rule of 70 only applies to a positive growth rate.