CAS EC 102 Lecture Notes - Lecture 6: Potential Output, Hans Rosling

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Bruce Watson

Document Summary

Growth is the change in real gdp over time. What we really care about is the change in real per capita (to see how well off people are in a country). This tells us the most about how living standards are actually changing. =growth rate of y = growth rate of pop. Economic growth is the ultimate determinant of such variables as . Economic growth is so highly correlated with so many variables we care about. Shows using bubbles and moving diagraph that most countries have just recently begun to enjoy economic growth. In a recession, like the recession of 2007 . 2009, real gdp per capita in the us falls by just one or two percentage points relative to the level of potential gdp. Even small differences in growth rates (1 or. At that rate, it would have taken india per capita gdp 200 years to reach current us level.