EC140 Chapter Notes - Chapter 25: Structural Unemployment, Human Capital, Diminishing Returns

• School: WLU
• Department: Economics
• Course: EC140
• Professor: Ken Jackson

Document Summary

Economic growth: long run increases to gdp (sustained: rule of 72 to understand cumulative effects of annual growth rate, 72/growth rate is years to double, ex. Measures of growth: real gdp, gdp per capita, gdp per worker. Improved material living standards: higher income leads to. Increased consumption: better health status, more attention to environment, awareness of inequalities. Costs of economic growth: mainly driven by investment (forgone consumption, high investment leads to lowered consumption, trade off between consumption now and consumption in the future. Less stability: destruction of jobs, structural unemployment. Increased use of resources: not environmentally friendly, may not increase overall well being, relative income matters. Inequalities - well being falls: may not be the best measure of well being, productivity may be a better indicator. Labour force growth: population and/or labor population, growth in human capital, workers and skillsets, growth of physical capital. In the long run, y is equal to y: ns=y*-c-g.