ECON-1007EL Chapter Notes - Chapter 4: Macroeconomics, Xm Satellite Radio, Government Budget Balance
30 Jan 2017
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Document Summary
Although wealthy industrialized countries are not free from poverty, hunger, and homelessness the typical person in those countries enjoys a standard of living better than at any previous time or place in history. Standard of living refers to the degree to which people have access to goods and services that make their lives easier, healthier, safer, and more enjoyable. Output-per-person is a better indicator of the average living standard than total output. Average labour productivity - output per employed worker. Average labour productivity and output per person are closely related. The more we can produce, the more we can consume! The typical household is more likely to experience better wages and living conditions when average labour productivity is rising. Due to the close link to the average living standard, average labour productivity and the factors that cause it to increase over time are of major concern for macroeconomists.
