ECON 1100 Chapter Notes - Chapter 7: Technological Change, Diminishing Returns, Longrun
28 Mar 2016
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Econ 1100 chapter 7 notes long-run economic growth: sources and policies. Industrial revoluion- the applicaion of mechanical power to the producion of goods, beginning in england around 1750. Ater that, other countries started experiencing long run economic growth. Small diferences in economic growth rate can have a large impact over ime for living standards. Compounding (like interest rates) magniies even the smallest numbers. Can divide the world"s economy into two categories: high-income countries (also known as industrial countries) ex. Canada, us: developing countries (poorer countries) ex. Economic growth model- a model that explains growth rates in real gdp per capita over the long run. Labour producivity- the quanity of goods and services that can be produced by one worker or by one hour of work. Technological change- a change in the quanity of output a irm can produce using a given quanity of inputs.
