ECON 104 Study Guide - Midterm Guide: Capital Formation, Human Capital, Federal Funds Rate
Document Summary
Negative trends: slowing human capital formation, falling labor force participation rate (working + looking for a job / those aged 16 and above, rising income inequality, moderated somewhat by falling household size, health, government benefits and cpi bias. Innovations for households 1900-1959: cars, telephones, airplanes, radio, tv, antibiotics, electricity, central heating, electric washing machines, and indoor plumbing with daily bathing: u. s economy has become less dynamic. Negative summary: slowing human capital, falling labor force participation rate, rising inequality of income. Innovation slowdown: u. s economy less dynamic (a) y/pop = l/pop * y/l - gdp per person (b) y/l = a*(k/l)^3 - labor productivity, when we use these equations, we use --- first. Also, the negative trends show up in ----- equations: b, two, slower growth seems likely for a few decades. This has been happening for 150 years: it seems unlikely. Y/pop = l/pop*y/l & y/l=a*(k/l: but individual story might well be different.
