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Chapter 8Don't forget about the age old question of Enumerate the elements of a contract.

- economic growth

• In real GDP or real GDP per capita over time
• 0/0 rate of growth
• Growth as a goal
• arithmetic growth : rule of 70

Don't forget about the age old question of What is the meaning of poverty threshold in human development?
We also discuss several other topics like What is the traditional ballad?
If you want to learn more check out What is the meaning of fertility in social problems?

        Approx # of years required

        to double real = We also discuss several other topics like What is dependency theory?
We also discuss several other topics like How do both philopshy and science attempt to explain the world?

- Growth and population

• Growth in us real GDP 1950 - 2012
• More than sixfold
• 3.1% per year

- Growth in U.S. real GDP per capital

• more than 3 fold
• At roughly 2% per year

- Qualifications

• Improved products and services
• Added leisure
• Other impacts

- modern economic growth

• Began w/ Industrial Revolution in late 1700’s
• On going increases in living standards
• Time for leisure
• Social change
• Democracy
• Human lifespan doubled

- Continue

• Started in GB spread in Euro and North America
• World wide differences in living

• Leading countries invent tech
• Follower countries adopt tech
• Some growing quickly

- Institutional structures of Growth

• Why do some environments advance so rapidly and others larit?

• Strong property rights
• Patients and copy rights
• Efficient financial institutions
• Literacy and widespread education
• Free trade - competitive market

- Determinants of Growth

• supply factors
• in quantity and quality         human resources
• in quantity and quality  natural resources
• in supply (or stock) of capitol
• Improvement in technology

- Demand factor

•    Households + business + gov purchase econs expanding outcome

- Efficiency factor

• must achieve econ efficiency and full employment

- labor and productivity

• Real GDP = hours + work x labor productivity

        ( how affectively)

- accounting for growth

• Factors affecting productivity growth

- tech advancements (40%)

- quantity of capitol (30%)

- education and training (15%)

• Economies of scale and resource allocation (15%)

- Productivity Growth

• Microchip/information technology
• start-up firms and increasing returns
• Source of increasing returns
• More specialized inputs
• Spreading of development costs
• simultaneous consumption
• Network effects
• Learning by doing

- econ growth

• Is economic growth sustainable & desirable
• The antigrowth view environmental & resource issues
• In defense
• High standards of living
• Human imagination (entrepreneurship) can solve environ & resource issues

- can each growth survive population decline?

• As econ shifts from agriculture → industry
• Fertility rates decline
• In population
• Each generation is smaller than the ne before
• Declining work force!

- inverse dependency ratio → size of work force compared to population at large

• Social security issues
• Baby boomers  & immigrants who are now retiring = a HUGE generation vs where we are how
• Innovation and productivity

Chapter 9: Business Cycles, Unemployment and Inflation

- The business cycle

• Alternating increases and decreases in economic activity over time

Phases                

- peak

- recession

- Trough

- expansion  

- Business cycle fluctuations

• Economic shocks
• Prices are “sticky” downwards
• Economic response emails  decrease in output and employment

- Causation : A first Glance

• Causes of shocks
• Irregular innovation
• Productivity changes
• Monetary factors
• Political events
• Financial instability & inaccuracy ( housing market and mortgage loans)
• Recession of 2007

- cyclical impact

• Durable goods
• Capitol goods
• Consumer durables
• How recession impacts different sectors of the economy
• Non durable goods
• Services
• Food and clothing

References: