ECON 105 Chapter Notes - Chapter 26: List Of Countries By Real Gdp Growth Rate, Real Interest Rate, Human Capital

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Seong- Jun Choi

Document Summary

Economic growth: sustained, long-run increases in the level of real gdp. Growth rates are sustained for many years have a profound influence on material living standard from one generation to the next. Rule of 72: for any variable that grows at an annual rate of x percent, that variable will double in approx 72/x years: can determine the gap in living standards between countries with different growth rates. If a country is growth fast, the gap will widen progressively. Measure average material living standards with real per capita gdp. When families earn more (economic growth) they tend to buy more (increase living standards) Economic growth often lead to a demand for a cleaner environment: higher average living standards not directly captured by measures of per capita gdp. Since homeless people aren"t in the labour force, they don"t experience the increased wages etc.