Economic growth — measurement?
Increase in wealth over time, via GDP or GNP.
GDP deflator — role?
Indicates inflation by comparing nominal and real GDP.
Doubling time — formula?
70 divided by the annual growth rate (%)
Economic growth — definition?
Sustained increase in output (GDP/GNP).
Real GDP — adjustment?
Adjusted for inflation using a base year.
GDP deflator — measure?
Overall price level change indicator.
Dou time — formula?
70 / annual growth rate (%).
Steady state — description?
When capital/output per worker stop growing.
Total Factor Productivity — role?
Residual growth component, not explained by inputs.
Convergence hypothesis — idea?
Poorer countries grow faster, catching up.
Answer 10 questions on Understanding Long-Term Economic Growth.
1. What is the primary driver of long-term economic growth according to the Solow model with technical progress?
2. Which of the following best describes the concept of convergence in economic growth?
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