ECON1130 Lecture Notes - Lecture 13: Transfer Payment, Tax Credit, Loanable Funds
16 Mar 2017
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Document Summary
Measures of growth: arithmetic average, geometric average. Determinants of growth: economic growth depends on labor productivity, labor productivity: the output produced per worker, labor productivity depends on, capital accumulation, human, physical. Investment in human and physical capital is the key to economic growth: means that we have more people, better people, more equipment leads to better technology, technological advances. Potential real gdp: real gdp (output) attained when firms operate at capacity (long run level of. Financial system: definition: collection of markets, institutions, and regulations through which funds are channeled from savers to borrowers, savers households (usually, borrowers firms. Financial markets: markets in which financed securities (instruments) are traded where their prices and yields are determined. Institutions that borrow from savers and lend funds to borrowers: commercial banks, savings banks, insurance companies, pension funds, mutual funds. Functions of financial system: saving function, liquidity function, risk function, credit function, payment function, policy function.
