ECO 1002 Lecture 17: ECO 6.4
Document Summary
Fill in equation, use t = 2010 numbers from table. Tell us how fast our economy is growing. Can be calculated using a percent change formula. A negative growth rate means the economy is contracting. Growth rates: using the numbers from the table again. Gdp does not capture how long it takes to produce goods and services. Average work week: south korea: 46 hours per week. South korea: 46 hours per week: netherlands: 28 hours, usa: 36 hours, japan: 36 hours. Shortcomings of gdp: the quality of the environment. Gdp is unable to distinguish how goods are produced. Country a: 10 million units of output, clean energy, clean air. Think about goods and services produced, but never sold, even though they create value for society. In less-developed societies where houses produce many of their own goods, gdp may be a poor measure of economic output. Sometimes legal: waitress tips, landscaper cuts a lawn.
