Technology and Long-run Growth Flashcards
1
Q
Long-run Economic Growth
A
Definition: an increase in the quantity/quality of the factors of production (makes PPF curve shift outwards/makes LRAS shift to the right).
2
Q
Technological Progress
A
Technological process is the main driver of long-run economic growth.
3
Q
Total Factor Productivity
A
TFP is a measure of the efficience with which an economy uses its inputs to produce outputs.
