1. Trang chủ
  2. » Tất cả

Lecture macroeconomics chapter 2 1 production growth

10 1 0

Đang tải... (xem toàn văn)

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Định dạng
Số trang 10
Dung lượng 738,18 KB

Nội dung

Institute of International Education MACROECONOMIC IN THE LONG RUN Production and growth Saving, Investment & Financial system The Basic tools of Finance Unemployment 2 1 2 2 2 3 2 4 Institute of Inte[.]

MACROECONOMIC IN THE LONG-RUN 2.1 Production and growth 2.2 Saving, Investment & Financial system 2.3 The Basic tools of Finance 2.4 Unemployment Institute of International Education 2.1 Production and growth ▪ What are the facts about living standards and growth rates around the world? ▪ Why does productivity matter for living standards? ▪ What determines productivity and its growth rate? ▪ How can public policy affect growth and living standards? Institute of International Education A typical family with all their possessions in the U.K., an advanced economy 2016: GDP per capita: $39,900 Life expectancy: 81 years Adult literacy 99% A typical family with all their possessions in Mexico, a middle income country 2016: GDP per capita: $8,200 Life expectancy: 77 years Adult literacy: 94.5% A typical family with all their possessions in Mali, a poor country 2016 GDP per capita: $780 Life expectancy: 58 years Adult literacy: 33% Economic Growth Computing of economic growth: by % changes in real GDP Yt − Yt −1 gt =  100% Yt −1 While Productivity ▪ Recall one of the Ten Principles from Chap 1: A country’s standard of living depends on its ability to produce goods & services ▪ This ability depends on productivity, the average quantity of goods & services produced per unit of labor input ▪ Y = real GDP = quantity of output produced L = quantity of labor so productivity = Y/L (output per worker) Institute of International Education Determinants of Productivity – Physical capital • Stock of equipment and structures – Human capital • Knowledge and skills that workers acquire through education, training, and experience – Natural resources • Nature, such as land, rivers, mineral deposits… – Technological knowledge • Knowing the best ways to produce • Innovations or Steve Jobs’ “think different” Institute of International Education Physical Capital Per Worker ▪ The stock of equipment and structures used to produce goods & services is called [physical] capital, denoted K ▪ K/L = capital per worker ▪ Productivity is higher when the average worker has more capital (machines, equipment, etc.) Institute of International Education Human Capital Per Worker ▪ Human capital (H): the knowledge and skills workers acquire through education, training, and experience ▪ H/L = the average worker’s human capital ▪ Productivity is higher when the average worker has more human capital (education, skills, etc.) Institute of International Education ... poor country 20 16 GDP per capita: $780 Life expectancy: 58 years Adult literacy: 33% Economic Growth Computing of economic growth: by % changes in real GDP Yt − Yt ? ?1 gt =  10 0% Yt ? ?1 While Productivity.. .2. 1 Production and growth ▪ What are the facts about living standards and growth rates around the world? ▪ Why does productivity matter... capita: $39,900 Life expectancy: 81 years Adult literacy 99% A typical family with all their possessions in Mexico, a middle income country 20 16 : GDP per capita: $8 ,20 0 Life expectancy: 77 years

Ngày đăng: 27/02/2023, 07:54