ECON 1010 Study Guide - Quiz Guide: Potential Output, World Economic Outlook, Business Cycle
8 Feb 2018
School
Department
Course
Professor
Document Summary
Economic growth is the expansion of production possibilities. The growth rate is the annual percentage change of a variable - the change in the level expressed as a percentage of the initial level. Real gdp per person is real gdp divided by the population. The rule of 70 is the number of years it takes for the level of any variable to double. It is approximately 70 divided by the annual percentage growth rate of the variable. The economic growth rate is the annual percentage change of real gdp. Real gdp growth rate = [(real gdp in current year real gdp in previous year) divided by real gdp in previous year] times 100. Real gdp per person grows whenever real gdp grows. (incorrect. The rule of 70 states that the number of years it takes for the level of any variable to double is approximately 70 divided by the annual percentage growth rate of the variable.
