Economic growth, productivity and living standards
4 important questions on Economic growth, productivity and living standards
The power of compound interest is that:
We express real GDP as the product of two terms:
Rather than thinking of A as a measure of technical progress only, we can think of it as the contribution to the growth in total output made by factors other that the inputs capital and labour. When viewed in this way, A is often referred to as:
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Different costs of economic growth are:
- The costs of creating new capital. High rates of investment in new capital require people to consume less and save more.
- Costs of research and development (R&D) -> scarcity principle
The question on the page originate from the summary of the following study material:
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