About This Chapter
Understanding Economic Growth & Productivity - Chapter Summary
In this chapter, you'll review economic growth and productivity. You'll take a look at what the GDP is and what it affects, what the term 'physical capital' refers to and how technology affects productivity. Once you have completed your review of the lessons, you should possess the ability to do the following:
- Discuss the definition of economic growth
- State what real GDP affects
- List the factors that affect productivity
- Define human and physical capital and how each affects productivity
- Relate the impact of technology on productivity
- Describe policies that encourage economic growth
- Provide details about national income accounting methods
Our expert instructors guide you through short but detailed lessons that take only 5-10 minutes to complete. All of the lessons are accessible at any time, from any device. Use the self-assessment quizzes accompanying each lesson to determine what you have retained and measure your readiness to move on to the next topic. Monitor your progress through the chapter using your Dashboard.
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 AP Macroeconomics: Exam Prep course
- Scarcity, Opportunity Cost & Production Possibility Curves
- Understanding Comparative Advantage, Specialization & Exchange
- Market Equilibrium, Supply & Demand
- Basics of Measuring the Economy
- Inflation & Adjustment in Economics
- Unemployment Basics
- Understanding Inflation & Unemployment
- Overview of Aggregate Demand & Supply
- Understanding Macroeconomic Equilibrium
- Money & the Market
- The Central Bank & Monetary Policy
- Fiscal & Monetary Policies in Economics
- Foreign Exchange & Trade Balance
- Overview of Inflows, Outflows & Restrictions
- AP Macroeconomics Test Information & Strategy
- AP Macroeconomics Flashcards