Term
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Definition
| tells us that the time it takes a variable that grows gradually over time to double is approximately 70 divided by that variable's annual growth rate |
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Term
| the _____ tells us how many years of growth at a given annual rate it takes to double real GDP per capita |
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Definition
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Term
| labor productivity/productivity |
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Definition
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Term
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Definition
| human-made resources such as buildings & machines |
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Term
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Definition
| improvement in labor created by the education & knowledge embodied in the workforce |
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Term
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Definition
| technical means for the production of goods & services |
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Term
| aggregate production function |
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Definition
| a hypothetical function that shows how productivity (real GDP per worker) depends on the quantities of physical capital per worker & human capital per worker as well as the state of technology |
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Term
| diminishing returns to physical capital |
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Definition
| when, holding the amount of human capital per worker & the state of technology fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity |
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Term
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Definition
| estimates the contribution of each major factor in the aggregate output production function to economic growth |
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Term
| total factor productivity |
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Definition
| the amount of output that can be achieved with a given amount of factor inputs |
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Term
| long-run increases in living standards arise almost entirely from growing _____, often simply referred to as _____ |
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Definition
| labor productivity; productivity |
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Term
| an increase in _____ is one source of higher productivity, but it is subject to diminishing returns to physical capital |
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Definition
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Term
| _____ & new _____ are sources of increases in productivity |
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Definition
| human capital; technology |
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Term
| the _____ is used to estimate the sources of increases in productivity |
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Definition
| aggregate production function |
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Term
| _____ has shown that rising total factor productivity, interpreted as the effect of technological progress, is central to long-run economic growth |
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Definition
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Term
| research & development/R&D |
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Definition
| spending to create & implement new technologies |
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Term
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Definition
| roads, power lines, ports, information networks, & other underpinnings for economic activity |
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Term
| technological progress is largely driven by _____ |
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Definition
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Term
| actions that promote growth are the building of _____, particularly public health infrastructure, the creation & regulation of a well-functioning banking system, & the financing of both education & R&D |
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Definition
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Term
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Definition
| international differences in real GDP per capita tend to narrow over time |
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Term
| the _____ seems to hold only when other things that affect economic growth - such as education, infrastructure, property rights, & so on - are held equal |
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Definition
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Term
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Definition
| if long-run economic growth can continue in the face of the limited supply of natural resources & the impact of growth on the environment |
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Term
| there's wide disagreement about whether long-run economic growth is _____ - how scarce natural resources like oil are or how difficult it will be to find alternatives |
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Definition
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