Term

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 


Term

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. 


Term
aggregate production function 

Definition
is the relationship between real GDP and the quantity of labor employed when all other influences on production remain the same. 


Term

Definition
is the quantity of real GDP produced by an hour of labor; it equals real GDP divided by aggregate labor hours 


Term

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. 


Term
neoclassical growth theory 

Definition
stresses that real GDP per person grows because technological changes increase saving and investment so that the capital stock grows. 


Term

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. 

