ECON 1010 Chapter Notes - Chapter 22: Ceteris Paribus, Shortage, Business Cycle
8 Feb 2018
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Economic growth: is the expansion of production possibilities. Economic growth rate = annual percentage change of real gdp. Growth rate: the annual percentage change of a variable (new old) old. Real gdp per person: indicator to measure standard of living. Only grows when real gdp grows faster than the population growth. Real gdp per person growth rate is approximately equal to the real. Gdp growth rate minus the population growth rate. Rule of 70: the number of years it takes for the level of any variable to double it is approximately 70 divided by the annual percentage growth rate of the variable (w/o % sign) The assumption is that currently growth rate is maintained throughout. When pace of growth is maintained over decades, it is economic growth rate. When growth is only one year, it is a temporary cyclical expansion. Over the past 88 years, the average growth rate of real gdp per person in.
