ECON 2010 Study Guide - Midterm Guide: National Bureau Of Economic Research, Loanable Funds, Robert Fogel
Document Summary
Chapter 9: economic growth, the financial system, and business cycles: a successful economy is capable of increasing production of goods and services faster than the growth in population, this is the only way the standard of living of the average person in a country can increase, one determinant of economic growth is a firms ability to, expand their operations, buy additional equipment, train workers, adopt new technologies, to carry out these activities, firms must acquire funds from households, directly through financial markets. Decades or more: use real gdp rather than nominal gdp to adjust for changes in the price level over time, figure 9 1, the increase in real gdp per capita actually understates the true increase in standard of living of americans in 2008 compared to 1900 because many of today"s goods and services were not available in 1900.
