Term
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Definition
is the annual percentage
change real GDP.
equals Real GDP in current year - Real GDP in past year divided by GDP in past year x 100
The standard of living depends on GDP per person |
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Term
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Definition
is a mathematical relationship
which states that the number of years it takes for the level of any variable to double is approximately 70 divided by the annual percentage growth rate of the variable. |
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Term
| aggregate production function |
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Definition
is the relationship between real GDP and the quantity of labor employed when all other influences on production remain the
same. |
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Term
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Definition
is the quantity of real GDP
produced by an hour of labor; it equals real GDP
divided by aggregate labor hours |
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Term
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Definition
is the view that real GDP
growth is temporary and that when real GDP per person
rises above subsistence level, a population explosion
eventually brings it back to the subsistence level. |
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Term
| neoclassical growth theory |
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Definition
stresses that real GDP
per person grows because technological changes increase
saving and investment so that the capital stock
grows. |
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Term
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Definition
__________ holds that real GDP per person
grows because of the choices people make in the
pursuit of profit and that growth will persist indefinitely. |
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