Study Guides (248,605)
United States (123,456)
Economics (182)
ECON 2010 (50)
All (35)
Midterm

Econ Test 2 Notes (got 96%)

11 Pages
123 Views

Department
Economics
Course Code
ECON 2010
Professor
All

This preview shows pages 1,2 and half of page 3. Sign up to view the full 11 pages of the document.
Description
Econ2010Test2NotesChapter9EconomicGrowththeFinancialSystemandBusinessCyclesAsuccessfuleconomyiscapableofincreasingproductionofgoodsandservicesfasterthanthegrowthinpopulationoThisistheonlywaythestandardoflivingoftheaveragepersoninacountrycanincreaseOnedeterminantofeconomicgrowthisafirmsabilitytooExpandtheiroperationsoBuyadditionalequipmentoTrainworkersoAdoptnewtechnologiesTocarryouttheseactivitiesfirmsmustacquirefundsfromhouseholdsoDirectlythroughfinancialmarketsStockandbondmarketsoIndirectlythroughfinancialintermediariesBanksBusinessCyclealternatingperiodsofeconomicexpansionandrecession91LongRunEconomicGrowthLongruneconomicgrowthprocessbywhichrisingproductivityincreasestheaveragestandardoflivingoBestmeasureofthestandardoflivingisrealGDPperpersonpercapitaanditismeasuredoverlongperiodsoftimeDecadesormoreoUserealGDPratherthannominalGDPtoadjustforchangesinthepricelevelovertimeFigure91oTheincreaseinrealGDPpercapitaactuallyunderstatesthetrueincreaseinstandardoflivingofAmericansin2008comparedto1900becausemanyoftodaysgoodsandserviceswerenotavailablein1900ExCertainlevelsofhealthcareRobertFogelclaimsthereisaconnectionbetweeneconomicgrowthimprovementsintechnologyandimprovementsinhumanphysiologythoIntheUSandwesternEuropeduringthe19centuryimprovementsinagriculturaltechnologyandrisingincomesledtodramaticimprovementsinthenutritionoftheaveragepersonCalculatingGrowthRatesandtheRuleof70oThegrowthrateofGDPpercapitaduringaparticularyearisequaltothepercentagechangefromthepreviousyearoExRealGDPin2007equaled13254billionandroseto13312billionin2008WecalculatethegrowthofrealGDPin2008asoForlongerperiodsoftimewecanusetheaverageannualgrowthrateWhendiscussinglongruneconomicgrowthweusuallyshortenaverageannualgrowthratetogrowthrateoWecanjudgehowrapidlyaneconomicvariableisgrowingbycalculatingthenumberofyearsitwouldtaketodoubleUsetheruleof70oRuleof70appliestobothrealGDPpercapitaandtothegrowthinanyvariableLaborProductivityquantityofgoodsandservicesthatcanbeproducedbyoneworkerorbyonehourofworkoIncreasesinrealGDPdependonincreasesinlaborproductivityoTwokeyfactorsthatdeterminelaborproductivity
More Less
Unlock Document

Only pages 1,2 and half of page 3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit