ECON 1100 Chapter Notes - Chapter 7: Joseph Schumpeter, Thomas Robert Malthus, Technological Change
24 Jan 2017
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Compounding: magnifies even small differences in rates over long periods of time. In the long run, small differences in economic growth rates result in big differences in living standards. An economy that grows too slowly fails to raise living standards. Western europe, australia, canada, japan, new zealand, us. Explains real growth rates in real gdp per capita over the long run. The average person can buy more goods and services only if the average worker produces more goods and services. Focuses on the causes of long-run labour productivity. Focuses on technological change and changes over time in the quantity of capital available to workers in explaining changes in real gdp per capita. Quantity of goods and services that can be produced by one worker or by one hour of work. How can a country"s workers become more productive: Is a change in the quantity of output firms can produce using a given quantity of inputs.
