In class students learned about the most pressing issue in macroeconomics - long-term economic growth. Economic growth is measured in real GDP per capita over time (standard of living). Economic growth is the result of increases in Labor Productivity - (1) Human Capital (education/training), (2) Physical Capital (machinery/infrastructure) and (3) Technology.
Afterwards students were introduced to the aggregate production function which plotted the positive (but diminishing) relationship between physical capital and real GDP per capita. Technological progress shifts the curve outward.
The notes are attached and the homework is listed/attached below.
Notes - Long Term Economic Growth and Aggregate Consumption Function
HW - Review - Section 2 - Supply/Demand Curve
Read Module 38 and Module 39
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