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10 Cards in this Set
- Front
- Back
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Production function |
a firm describes the relationship between the inputs the firm uses & the output it creates |
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Aggregate production function |
describes the relationship among all the inputs used in the macroeconomy & the total output (GDP) of that economy |
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Marginal product |
an input is the change in output divided by the change in input |
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Diminishing marginal product |
when the marginal product of an input falls as the quantity of the input rises |
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Steady state |
the condition of a macroeconomy when there is no new net investment |
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Depreciation |
a fall in the value of a resource over time |
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Net investment |
NI = investment - depreciation |
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Convergence |
the idea that per capita GDP levels across nations will equalize as nations approach the steady state |
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Exogenous growth |
growth that is independent of any facts in the economy |
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Endogenous growth |
growth driven by factors inside the economy |
