ECO100Y5 Chapter Notes - Chapter 20: Human Capital
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ECO100Y5 Full Course Notes
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Eco(cid:374)o(cid:373)ic gro(cid:449)th, sta(cid:374)dards of li(cid:448)i(cid:374)g, capacity, eco(cid:374)o(cid:373)ic policies, opportu(cid:374)ity costs. What is economic growth: economists" definition: an increase in the capacity to produce. Capacity is how much we can produce if we use all our resources. They use terms like full-employment real gdp, full-employment output, or the potential level of real gdp to refer to the amount we can produce when at full capacity. They"re referring to movement to & away from the frontier. They mean the booms and recessions and temporary increases and decreases in real gdp. Divide 72 by the rate of annual percentage change of a variable to get the approximate number of years it takes for the variable to double. For example, at a 4% growth rate, real gdp would double every 18 years (72/4=18). There are examples of moving towards the ppf instead of expanding the ppf itself. Discovering more natural resources can be useful, but is not always an option.
