ECON 1125 Lecture Notes - Lecture 8: Efficient-Market Hypothesis

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Chapter 8: economic growth: the size of the pie. Two ways to measures economic growth: the growth in rgdp over time, the growth in rgdp/pop over time percapita rgdp growth. Either way growth is measured as a percentage change which is always measured as: [ rgdp (2015) - rgdp (2014) ] / [rgdp (2014)] x 100 = . 7% http://www. bea. gov/newsreleases/national/gdp/gdpnewsrelease. htm. Adam smith said it was due to markets and trade. Labor force participation rate (women), hours per year, wealth creation and strong work ethic. Pollution, climate change, and ozone depletion all negative externalities caused by not paying the full cost of production, but passing on the cost to every person on the planet. As a country grows more wealthy, more resources go toward luxury items, not necessities, further increasing the externalities and the harmful effects on the environment. Growth leads to rising output and a rising standard of living for most if not all of the people on the planet.

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