Partial preview of the text
Download EC201 Term 2 Summary Notes and more Summaries Macroeconomics in PDF only on Docsity!
KEY QUESTIONS OF = ECONOMIC @ROWTH economic Growth 7 * Whet expiains dupeences iN RCOMOMLC perpOrmancz ACIS Counties 7 Rie poorer countries going to cath up? » What poucies can promoit Growth 7 DISTRIBU TIONAL GROWTH EQUATIONS ——S— 5 MEASURING ECONOMIC GRowTH , : GDP = market value oO final goods and. services POAC IK an e@nomy iN GAY gen yaar Avoids problom oy uxtpuct in a Rach 2 Growth rose | 9 = Yao Yao | — | { aoe >WASK coMmpudng Changs Over time, we fix PID at given baseUne year - “REAL drerecccneccinmmns @ e Constant Growth rare: Yer Yo + H)* “Rule Of 20: a country’s GDP G0 Wipleg Birery 20 Average annual growth rae betwen NN 7 To Compart Countnes, no Pe A RE OE inter nabonad BNer estimating Croy- PCRS Using pur County Gaps un read ng P Chasing . POvWer 4 -~¢ y GPP Using market e Pong Pee oe sing mar Change CONSEQUENCES OF ECONOMIC GROWTH Se ROW TE a . ge 2 MDAOLO NIC he, Gop in S- rela.nonshup betveen Asiniousion of Ron growth ¥ income iAcCome. ) ES ADVANTAGES = & : a0, ner nad =e iow 94.499 middle ches ee F qe LL, GP easier +s nolo i ere * 522 Largest GDP is & son a ero 2 inrger a ok or cone. INCOME growin 5 Ly positive POA (ohective Grout, . SbORGLY p ty ¥ COnsistent) @ Big dipeene corre iced with Lope withen. im eal wages Perera dite » GPP meas ie mach AECodINg *> cavel FREESE AEC @courtney higher OL educavion /sit 4 we being Lamang Wworhay gO od @aap in inCone betreen Whar Onad Yura regions \G urban tend bo hove wighee lacone . TORU CHIE Ch (29. HPL and cay lize sacispaction ) > GOP LS eascnaie MLOUrE ew Look at when ching About Browth and derelop nent US real GPP /cagiva roe by reaty (5~ fold CG, explosion op NOR ase Growth ¥ 13S Country Seay FON Outle UfRences in economic, re ree nt perlormance Preromenom From 1320-2000, “ > Greer Divergence ak enormous gap on &bP “bette rich ® POor Counties > DISADVANTAGES OF GDP SS 7 Not a diect e~ \y Peopie atic care MeAsSUre OL About ether thihga net weit being Wreck captured by GbP ~ (ag. health, hoppianan ) GPP grourh may bang nogode impacts uke clin oune Change, working more hou and inequality 
