ECON 211 Lecture Notes - Lecture 7: Demand Factor, Growth Factor, Free Trade
Document Summary
Increase in real gdp over a time period. Increase in real gdp per capita over a time period. Qualifications: growth data do not take into account. Percentage change = (new - old)/old * 100. Approximate number of years required to double real gdp = 70/annual percentage rate of growth. Combine 4 supply factors with 1 demand factor. Increase in quantity and quality of natural resources. Increases in quality and quality and quantity of human resources. Increases in the supply (or stock) of capital goods. Improvements in technology: demand, households, businesses, and government must purchase the economy"s expanding out. Add 1 factor of efficiency: must achieve economic efficiency (8-65) Mix well, sprinkle generously with entrepreneurial spirt and allow free markets to work. Factors affecting productivity growth: technological advancement (40%, quantity of capital(30%, education and training (15%, economies of scale and resource allocation (15%) Human imagination can solve environmental and resource issues. Shocks and sticky prices: unexpected innovations.
