Ch 21 the power of economic growth Flashcards
1
Q
catch up growth
A
nations catching up on currently existing technology
2
Q
sustained growth
A
steady growth, ex US UK didnt really need to write this
3
Q
physical capital accumulation
A
physical capital stock K can be increased by increasing investment
4
Q
if we ignore imports exports gov spending, what is gdp equal to and what is investment equal to
A
GDP = consumption + investment GDP = consumption + savings Investment = savings
5
Q
savings rate
A
corresponds to the fraction of income that is saved
total saving / gdp
6
Q
what leads to sustained growth considering the fact that there are diminishing marginal returns
A
technology
Moores law, technological growth is exponential
