šŸ·ļø LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION ā†’
Log in
HomeClass Notes1,200,000CA670,000

Economics 1022A/B Lecture : Lecture #5 - Jan 23.docx

33 views1 pages
24 Apr 2012
School
Western University
Department
Economics
Course
Economics 1022A/B
Professor
Jeannie A Gillmore

For unlimited access to Class Notes, a Class+ subscription is required.

maroonwoodchuck8495771 and 39243 others unlocked
ECON 1022A/B Full Course Notes
27
ECON 1022A/B Full Course Notes
Verified Note
27 documents

Document Summary

= real gdp (year 2) real gdp (year 1) Economic growth rate = % change in real gdp. Change in standard of living = % change in real gdp per person. Growth rate of real gdp per person = growth rate of real gdp population growth rate. Rule of 70 = a variable doubles in (70 / growth rate) years. Saving and investment: when you have new investment, you get new capital. Occurs when the quantity of labour demanded equals the quantity of the real. Same quantity of labour as the aggregate production function. Labour productivity = real gdp / aggregate hours. Aggregate hours the # of hours worker in the economy in a year.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

ECON 20B Lecture Notes - Lecture 12: Human Capital, Diminishing Returns
ochrerhinoceros257
ECON 1010
Final Exam
Study Guide
ECON 1010 Study Guide - Quiz Guide: Potential Output, World Economic Outlook, Business Cycle
ochreraven899
ECON 1010 Chapter Notes - Chapter 22: Potential Output, Business Cycle, Workforce Productivity
yellowbat880

Related Questions

Which of the following is a good gauge of economic progress?
Ā 
a) the level of real GDP per person and the growth rate of real GDP per person
Ā 
b) neither the level nor the growth rate of real GDP per person
Ā 
c) the growth rate of real GDP per person, but not the level of real GDP per person
Ā 
d) the level of real GDP per person, but not the growth rate of real GDP per person

Consider the list of possible answers below to a question asking the best measure of the standard of living:

A.real GDP per person

b.nominal GDP per personĀ 

c. the growth rate of nominal GDP per person

d. real GDP

e. nominal GDP

f. growth rate of real GDP per person

Ā 

What is the right answer, and why are the others wrong? (one sentence explanations)

What does convergence theory predict about economic growth?

A)What arguments support it?

B)What arguments suggest that convergence might be a long way off, if ever.

Read the news clip, then answer the following question

News Clip:

India's current growth averaged 8.5 percent a year over the past four years. This growth rate is sustainable, but a rate of 10 percent was possible if reforms were introduced. The OECD suggests that ongoing economic liberalization could help the country double its real GDP per person in 10 years.

Question:

By raising the real GDP growth rate from 8.5 percent a year to 10 percent a year and maintaining a constant population growth rate, real GDP per person will double ______ years earlier.

A) 2.7

B) 10.0

C) 12.7