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7 Cards in this Set
- Front
- Back
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economic growth
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A measurement of economic growth of a country. An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.
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pros and cons of economic growth
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pros are that growth reduces illiteracy, poverty, and illness and increases life spans and political stability. cons are that growth causes environmental pollution and alienation and urban congestion.
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rule of 70
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rule stating that the appropriate number of years required for per capital real GDP to double is equal to 70 divided by the average rate of economic growth
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labor productivity
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Labor productivity measures the amount of goods and services produced by one hour of labor. More specifically, labor productivity measures the amount of real GDP produced by an hour of labor. Growing labor productivity depends on three main factors: investment and saving in physical capital, new technology and human capital.
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key determinants of economic growth
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saving because wit out saving their is no investment and with out investment there is no economic growth
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new growth theory
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a theory of economic growth that examines the factors that determine why technology, research, innovation, and the like are undertaken and how they interact.
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creative destruction
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through which new business ultimately create new jobs and economic growth after first destroying old jobs, old companies and old industries. Such change is costly and painful. but it is necessary for economic advancement.
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