Intro Flashcards

1
Q

What is the growth rate rule of thumb

A

It takes 70/g years for GDP to double

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1
Q

Define economic growth

A

The increase in value of goods and services produced by an economy. Conventionally measured as the percent rate increase in real GDP

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2
Q

Give 2 pros of using GDP per capita

A

It has a positive correlation with:

  • life expectancy
  • consumption
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3
Q

Give 3 negatives of using GDP per capita

A
  • No info about distribution
  • Goods outside of marketplace not included
  • includes negative spending
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4
Q

Give 5 facts about growth trends

A

1) Enormous variation in per capita income across economies

2) substantial and persistent differences in growth rates too

3) Economic growth is a very recent phenomenon

4) Once started, it is a persistent phenomenon

5) The takeoff occurs at different times for various world regions

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5
Q

Give 4 Kalsor stylised facts

A

1) Many countries experience not only sustained, but also balanced growth

2) Real Capital/Output ratio roughly constant

3) Real return to capital and real interest rate are approximately constant

4) Fraction of income capital owners/ workers roughly constant

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6
Q

Give the 3 broad causes of economic growth

A

1) Physical capital accumulation

2) Human capital accumulation

3) Growth of stock of knowledge (technical progress)

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