ECON 2020U Chapter 7: Principles of Macro [Mankiw, Kneebone, McKenzie] - Chapter 7 Notes
Document Summary
Some poor countries, although capable of growing to meet the standards of rich countries, do not grow. Poor countries real income can be compared to (and equal) the real inc ome of rich countries over 100 years ago. This is because the poor countries did not see the growth that the rich countries saw in this 100 year lapse. ~~~ productivity: it"s role and determin ants ~~~ Productivity > the quantity of goods and services produced from each h our of a worker"s time. Since the gdp is a measure of the productivity of a nation, it draws a strong correlation to that nation"s economic well-being. Canadians live better than nigerians because canadian workers are more productive than nigerian workers. The japanese have seen a higher rate of growth than argentenia ns because japan saw a greater rise in productivity. Physical capital > the stock of equipment and structures that are used to produce goods and services.
