ECON 1100 Chapter Notes - Chapter 7: Foreign Portfolio Investment, Measurement Problem, Readwrite
31 Mar 2015
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Econ*1100 chapter 7 - long-run economic growth: sources and policies. Production of cotton cloth using machinery powered by steam engines started it. Spread to other countries which experienced long run economic growth and sustained increases in real gdp/capita eventually raising standards in those countries to the levels of today. Recall technological change is change in quantity of output firms can produce using given quantity of inputs: three main sources of technological change. Better means of organizing and managing production. Gdp per hour worked and capital per hour worked, level of technology constant. K = capital, l = labour, y = real gdp. Curve represents the production function and as we move along the function, the level of technology remains the same. Replacement of existing capital with more productive capital. Occurs because knowledge, once discovered, is available to everyone; therefore, is nonrival and nonexcludable. Protecting o intellectual property with patents and copyrights.
