ECON 4130 Lecture Notes - Lecture 3: Growth Factor, Capital Accumulation
11 Nov 2020
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6 b growthrate growthrate growthrate oftheeconomy oftfp oflaborsupply productivity growth rate of landsupply. Measures the total effect of anything that"s not includedin the productionfunction on the economic growth rate a measureof our ignorance. Extensive growth growthdue to morefactor input ll x k will hit diminishiytetunjm. This is main drivingforce behind long run economic growth. 2 explain what the output elasticity of labor implies a o 5 a 1 outputby 0. 5 accrues to labor increase in labor supply increases total. This implies that 50 of total real output. Thisimplies that p i d l o 5 0 5. 50 of total real output accrues to land. 3 was outputgrowthmostly extensive or intensiveduring this period explain of the tppper annum growth percentagepoint: 2pp were due to tfpgrowth. O 5co4 1 0 2 pp were 1and supply so extensive. D l n u ceiling on grain all grain sold to the state below global marketprice usesurplus topurchaseforeign reserves.
