ECON1132 Lecture Notes - Lecture 9: Longrun, Human Capital
25 Sep 2017
School
Department
Course
Professor
Document Summary
Annual percentage change in the cpi: monthly growth rate from jan 47-feb 48. Price changes year to year matter more: = cpijan48 - cpijan47 - for each month. Ranking of countries by income can change pretty significantly over time. Poor countries have the possibilities of turning around. Richer countries can be overtaken by poorer countries with faster growth rates. A country"s standard of living depends on its ability to produce goods and services. Q of goods and services produced from each unit of labor input. Productivity = y/l y= real gdp, l q of labor. Doesn"t always mean workers are more productive, generally given labor input. Productivity people can produce more (not typically effort) When workers are productive real gdp is large and incomes are high. When productivity grows living standards grow as well. An economy"s income is also their output. Equipment and structures used to produce goods and services.
