Chapter 32 - Long-Run Growth Flashcards

1
Q

Catch-up

A

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.

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2
Q

aggregate production function

A

A mathematical relationship stating that total GDP (output) depends on the total amount of labor used and the total amount of capital used.

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3
Q

foreign direct investment (FDI)

A

Investment in enterprises made in a country by residents outside that country.

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4
Q

embodied technical change

A

Technical change that results in an improvement in the quality of capital.

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5
Q

disembodied technical change

A

Technical change that results in a change in the production process.

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6
Q

Invention

A

An advance in knowledge

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7
Q

Innovation

A

The use of new knowledge to produce a new product or to produce an existing product more efficiently.

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