ECON 202 Chapter Notes - Chapter 7: Fishing Lure, Woodworking, Capital Accumulation
2 Oct 2018
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An economy"s gdp measures both the total income earned in the economy and the total expenditure on the economy"s output of goods and services. Level of real gdp is a good gauge of economic prosperity. Growth of real gdp is a good gauge of economic progress. Long-run determinants of the level and growth of real gdp (in three steps): Examine international data on real gdp per person. Gives some sense of how much the level and growth of living standards vary around the world. Examine the role of productivity (amount of goods and services produced for each hour of a worker"s time) The nation"s standard of living is determined by the productivity of its workers. Consider the link between productivity and the economic policies that a nation pursues. The data on real gdp per person show that living standards vary widely from country to country.
