ECN 204 Lecture Notes - Annual Percentage Rate, Human Capital, Demand Factor
20 Apr 2012
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Document Summary
Economists define and measure economic growth as either: an increase in real gdp occurring over some time period, an increase in real gdp per capita occurring over some time period. The real gdp per person, found by dividing real gdp by a country"s. %change in growth = [(2008 real gdp 2007 real gdp)/2007 gdp] x 100. Increase in output relative to population= increase in wages/income/standard of living. Small percent changes matter when dealing with large sums. Approximate number of years required to double real gdp. For example, 5% annual rates of growth will double real gdp in about 14 years (= 70/5) Three reasons: (1) improved products and services (2) added leisure (3) other impacts: environment. Modern economic growth is the historically recent phenomenon in which nations have experience sustained increases in real gdp per capita. The timing of a country beginning its modern economic growth has to do a lot with their current gdp per capita and living standards.
