ECON 2010 Lecture : ECON2010Chap7Notes

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15 Mar 2019
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Economic growth, the financial system, and business cycles. Hot , followed by a pullback phase: outside events, such as geopolitical forces, natural disasters, and other non economic interruptions can influence the cycle. Long-run economic growth: the process by which rising productivity increases the average standard of living, calculating growth rates and the rule of 70, number of years to double = Growth rate: if the growth rate is 10%, divide 70 by 10. Increases in capital per worker and improved technology yield higher levels of productivity: increases in capital per hour work, capital, the resulting product investment used to produce other goods and services. May take the form of factories, plants, equipment, or other elements allowing for production. Some ideas simply come to mind, but most technology is the result of investment in research and development. Economic growth: the increment in capital will necessarily be assigned to a less productive use than the previous increment, the principle of increasing opportunity.

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