Chapter 7 Flashcards
1
Q
creative destruction
A
a term coined by Joseph Schumpter in the 1940s to describe the process of new technologies advancing living standards while destroying many existing firms
2
Q
per-worker production function
A
the relationship between real GDP per hour worked and capital per hour worked, holding the level of technology constant
3
Q
horizontal axis
A
capital per hour (K/L, or capital/labour)
4
Q
vertical axis
A
real GDP per hour (Y/L, or GDP/labour)
5
Q
new growth theory
A
by Paul Romer, explaining that knowledge capital is the key determinant of economic growth
6
Q
secular stagnation
A
an extended period of slow growth
