Economic Growthcapita over some time period Approximate number of years required to double = 70... Modern Economic Growthliving standards causing dramatic increases in the standard of li
Trang 1Economic Growth
8
Trang 2Economic Growth
capita over some time period
Approximate
number of years
required to double = 70
Trang 3Economic Growth
Trang 4Modern Economic Growth
living standards causing dramatic
increases in the standard of living in
less than a single lifetime.
Trang 5Modern Economic Growth
• Time for leisure
• Social change
• Democracy
• Human lifespan doubled
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Trang 6Modern Economic Growth
differences in living standards
Trang 7Modern Economic Growth
Figures are in 2005 dollars
Source: Penn World Table version 6.3, pwt.econ.upenn.edu
Real GDP Real GDP Average annual per capita, per capita, growth rate, Country 1960 2010 1960-2010
United States $ 14,766 $41,365 2.1%
United Kingdom 11,257 34,268 2.2
France 9,347 31,299 2.4
Ireland 6,666 34,877 3.3
Japan 5,472 31,477 3.5
Singapore 4,149 55,862 5.2
Hong Kong 3,849 38,865 4.6
South Korea 1,765 26,609 5.4
Trang 8Modern Economic Growth
Trang 9Institutional Structures of Growth
Trang 10Determinants of Growth
of natural and human resources
of capital goods
Trang 11Determinants of Growth
government must purchase the economy’s expanding output
and full employment
Trang 12Labor and Productivity
• Size of
employed labor force
• Average
hours of work
Labor Inputs (hours of work)
• Technological
advance
• Quantity of
capital
• Education and
training
• Allocative
Labor Productivity (average output per hour)
Real GDP
Real GDP = hours of work x labor productivity
Trang 13U.S Economic Growth
Accounting for the Growth of U.S Real GDP, 1953-2011, Plus Projection from 2011-2022 (Average Annual Percentage Changes)
Source: Derived from Economic Report of the President, 2008, p 45; Economic Report of the
President, 2016, p 113; Bureau of Economic Analysis; and Bureau of Labor Statistics.
Trang 14Accounting for Growth
allocation (15%)
Trang 15Accounting for Growth
Average Test Scores of Eighth Grade Students in Math and Science, 2011