ECON 208 Chapter Notes - Chapter 1: Investment Goods, Mixed Economy, Marginal Cost

• School: McGill University
• Department: Economics
• Course: ECON 208
• Professor: El- Attar Mayssun

Document Summary

Productivity= how much output (income) is produced by one hour of work effort. Productivity growth (long-term) increase in average living standards. Issue: productivity growth is in decline lately risk of lack of improvements in living standards. Populatio(cid:374) agi(cid:374)g= the stead(cid:455) (cid:396)ise of a(cid:448)e(cid:396)age age of (cid:272)ou(cid:374)t(cid:396)(cid:455)(cid:859)s population (less young, more old) As a result of long-term decline in fertility and increase in average life-expectancy. Retirement when old decline in growth rate of labour force harder for industries to find workers rise in wages. Higher costs invested in seniors than youth increase in public health care spending. Cli(cid:373)ate (cid:272)ha(cid:374)ge= glo(cid:271)al phe(cid:374)o(cid:373)e(cid:374)o(cid:374) of (cid:396)ises i(cid:374) ea(cid:396)th(cid:859)s a(cid:448)e(cid:396)age te(cid:373)pe(cid:396)atu(cid:396)es due to lo(cid:374)g-term increase in emissions of greenhouse gases. Issue: challenging but urgent need to design better economic policies reducing gases and increasing sustainability. Issue: collapse of us housing market (2007-2008) failure of major financial insitutions global financial crisis largest synchronized world recession in 70 years.