Term
|
Definition
| Sustained, long-run increases in the level of real GDP |
|
|
Term
|
Definition
| The set of skills workers acquire through formal education and on-the-job training |
|
|
Term
| Aggregate Production Function |
|
Definition
| The relationship between the total amount of each factor of production employed in the nation and the nation's total GDP |
|
|
Term
| Law of Diminishing Marginal Returns |
|
Definition
| The hypothesis that if increasing quantities of a variable factor are applied to a given quantity of fixed factors the marginal product of the variable factor will eventually decrease |
|
|
Term
| Constant Returns to Scale |
|
Definition
| A situation in which output increases in proportion to the change in all inputs as the scale of production is increases |
|
|
Term
| Embodied Technical Change |
|
Definition
| Technical change that is intrinsic to the particular capital goods in use |
|
|
