ECON 201 Lecture Notes - Lecture 10: Business Cycle, Human Capital, Production Function
Document Summary
Econ 201 lecture 10 economic growth pt. Economic growth is associated with the long run: business cycle is associated with the short run (ignore for now) It"s all about output in the long run. For most of human history, everyone everywhere was extremely poor: this is different now. Even the least developed countries are doing better than 1800s england: even after the industrial revolution (1760-1830), the material state of most of humankind was one of serious deprivation. Labor productivity: often referred to as productivity. Improvement in labor created by the education and knowledge embodied in the workforce. Technology: technical means for the production of goods and services. High sources means high growth rate (intuitive) Visit chapter 2 appendix in krugman"s macroeconomics for explanation. There"s a difference between these two things. When we say that real gdp grew, we mean that the level of real gdp increased.
