Chapter 32 - Long-Run Growth Flashcards
Catch-up
The theory stating that the growth rates of less developed countries will exceed the growth rates of developed countries, allowing the less developed countries to catch up.
aggregate production function
A mathematical relationship stating that total GDP (output) depends on the total amount of labor used and the total amount of capital used.
foreign direct investment (FDI)
Investment in enterprises made in a country by residents outside that country.
embodied technical change
Technical change that results in an improvement in the quality of capital.
disembodied technical change
Technical change that results in a change in the production process.
Invention
An advance in knowledge
Innovation
The use of new knowledge to produce a new product or to produce an existing product more efficiently.