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12 Cards in this Set
- Front
- Back
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The growth in per capita income has been _____ in all developed countries
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sustainable
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savings (investment) rate and ____ are positively correlated
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output growth
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Among the richer set of countries, there is a ____ relationship between output and growth.
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negative
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TRUE OR FALSE: There is a systematic relationship between standards of living and its growth rate across countries.
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FALSE.
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TRUE OR FALSE: World income inequality has gone up.
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TRUE.
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Consumption/Output and ____ are roughly stationary in developed countries.
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Investment/Output
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TRUE OR FALSE: LAbor share in total income and capital share in total income are roughly constant.
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TRUE.
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Labor share in total income is equal to _____
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Wages and Salary divided by Output
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TRUE OR FALSE:
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A significant part of growth of output Y canot be explained with factor accumulation.
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What is growth accounting used for?
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...a technique used to understand the sources of economic growth. Applying the technique decomposes output growth into growth coming from separate components of the production function.
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Total Factor Productivity (definition)
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An increase in the four basic factors used to produce goods and services in economics -> Labor, Capital, Land, Productivity
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Factor growth CANNOT support sustained growth. Why?
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It runs into diminishing returns.
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