[ECON 223] - Final Exam Guide - Comprehensive Notes for the exam (43 pages long!)

• School: Queen's University
• Department: Economics
• Course: ECON 223
• Professor: Anya P Hageman

Document Summary

Unit 1: for an economy to survive, there must be a minimum level of supplies and capital maintained, come hell or high water . Moreover, participants must be motivated to work and to maintain the capital stock: the standard of living grows when labour productivity grows and when more people are working, or working longer hours. Labour productivity depends on the amount of capital per worker-hour, and on the multifactor productivity. Multifactor productivity, a measure of overall productive ef ciency, is affected by the business climate and by competitive pressures as well as technology. Green national accounting measures deducts the costs of environmental degradation and resource depletion from gnp to give a sense of what part of the nation"s output is sustainable. The long run aggregate supply curve indicates the greatest value that a country can produce at the natural level of unemployment and using all physical capital to capacity,