Living Standards And Economic Growth

2198 Words 9 Pages
Improving a country’s standard of living aims to increase the degree of wealth and comfort that a group of people in a certain geographic area experience by promoting economic growth. The standard of living takes into account many factors, some being; income gap, unemployment rate, poverty level, inflation rate, and gross domestic product. Gross domestic product or GDP is the sum of a country’s consumption, investment, government spending, and net exports. The most common measurement of a country’s standard of living is the average real GDP per capita which breaks down the country’s GDP into equal shares based on the population. Many poor countries don’t have a high GDP per capita because their GDP isn’t substantial for their population. The …show more content…
(Spring 2004). "Living Standards and Economic Growth" The Ledger: Federal Reserve Bank of Boston 's Economic Education Newsletter 12-14. Print
This source is a newsletter from Boston’s Federal Reserve Bank from the winter of 2003/ the spring of 2004. This newsletter also appealed to me because it had to do with my topic and it was simple enough to read, that I could actually understand and pull out content that could strengthen my understanding of living standards and economic growth.
The main points of this issue deal with productivity, living standards, and economic growth. The issue discusses two productivities: labor and multifactor which when increased, increases the standard of living allowing the economy to produce more out of less overtime. The author explains the economic growth theory in different terminology, allowing me to expand my knowledge on Solow’s Model. This explanation helped me further discuss how Solow’s Model plays an important role in determining policies that will improve the standard of living.

Mankiw, N. Gregory (2016). "Chapter 8: Capital Accumulation and Population Growth & Chapter 9: Technology, Empirics, and Policy. “Macroeconomics. 9th ed. 211-69.
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The model explains how the change in capital stock equals investment minus the breakeven investment—in other terms the sum of depreciation, growth rate, and technological progress times capital. The equation can be depicted as Δk = sf(k) - (훿+n+g)k. Mankiw explains how all the variables work together, to achieve a steady state that can explain balanced growth and conditional convergence. He also proposes some policies that will promote economic growth in the long run dealing with saving, investment, technological progress, and reduction of government intervention that I expand upon in my

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