About This Chapter
Economic Growth and Productivity
Economic growth sounds pretty good, doesn't it? It doesn't seem like too big of a mystery, either. When you want to contribute to your own personal economic growth, you probably opt to work a few extra hours or cut back on unnecessary spending. However, it's not as simple a thing on a macroeconomic scale. This chapter explores the topics of economic growth and productivity.
In these lessons, you'll learn how to define productivity from a macroeconomic perspective and how it relates to economic growth. In addition to discussing productivity, these lessons cover both human and physical capital. Both of these things have an impact on productivity, which in turn has an effect on the economy as a whole. Productivity also has an effect on unemployment, which is also discussed in one of these lessons.
In addition to those topics, you'll learn about the impact technology can have on productivity. It probably isn't surprising to learn that technology and productivity are connected, but in these lessons you'll learn exactly how and why they're related. Finally, you'll learn about economic policies that can promote both growth and productivity.
This macroeconomics chapter should deepen your understanding of growth and productivity as economic principles. To test that understanding, you can take the short self-assessment quizzes that are included with each lesson.
1. Economic Growth: How to Raise a Nation's Potential Output
Learn the truth about long run economic growth, including how economists define and illustrate an increase in the potential output of a nation through change in real GDP.
2. How Real GDP per Capita Affects the Standard of Living
Have you ever wondered why some countries are better off than others? In this lesson, explore the concept of real GDP per capita, an economic measure of a nation's standard of living, and discover how population, productivity, and the savings rate effect the standard of living.
3. Productivity: The Economy's Long-Run Growth Engine
Using real-world examples, you'll learn more about what productivity is and four things that determine it within a nation - physical capital, technology, human capital, and natural resources.
4. Investment in Human Capital and Productivity
This lesson explores the education, knowledge and skills of the labor force - what economists call human capital - including how it affects productivity and economic output.
5. Physical Capital: Definition and Effects on Productivity
This lesson explains what physical capital is and why it's important to an economy. Using real-world examples, you'll see how it relates to the process of producing goods and services, which is a major foundation of economic growth.
6. How Technology, Research & Development Affect Productivity
Economists consider productivity to be a nation's long-run growth engine. This lesson explores the connection between technology, research & development, and productivity, using real-world examples.
7. Growth Policy and Economic Productivity
What do savings accounts and promoting education have to do with helping the economy to grow? In this lesson, we will explore government policies that help promote higher long-run economic growth.
8. National Income Accounting
GDP is a common macroeconomic concept used to describe the size of a country's economy. But where does this number come from? In this lesson, we'll discuss national income accounting - the methodology used to calculate GDP.
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Other chapters within the Economics 102: Macroeconomics course
- Scarcity, Choice, and the Production Possibilities Curve
- Comparative Advantage, Specialization and Exchange
- Demand, Supply and Market Equilibrium
- Measuring the Economy
- Inflation Measurement and Adjustment
- Understanding Unemployment
- Aggregate Demand and Supply
- Macroeconomic Equilibrium
- Inflation and Unemployment
- Money, Banking and Financial Markets
- Central Bank and the Money Supply
- Fiscal and Monetary Policies
- Foreign Exchange and the Balance of Payments
- Inflows, Outflows, and Restrictions
- Studying for Economics 102