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Este Cmap, tiene informaciĆ³n relacionada con: 14 Economics - Economic Growth, NeoClasical Growth Theory With no tech change, no long term growth in GDP. Changes in tech causes us to save more and invest wich causes capital per labour hour to growth. depends of the opportunity cost of having childrens. People uses target rate of return for make saving decisions. (incentive) explained by theories ECONOMIC GROWTH, Markets needs ECONOMIC GROWTH, Productivity it comes from ECONOMIC GROWTH, Save and invest increasing it needs to discover new tech, Save and invest contributes Productivity, more important to economic growth that labor or capital is to discover new tech, ECONOMIC GROWTH increasing it needs to discover new tech, Monetary Exchange needs ECONOMIC GROWTH, Productivity one-third rule at any give state of tech, a 1 % increase in capital per labour hr will increase real gdp in 1/3 of 1%, to invest in human capital increasing it needs to discover new tech, Factors and labor it comes from ECONOMIC GROWTH, New Growth Theory Knowledge capital is the driver. It does not experience dimishing returns people want a higher standar of living then they make choices adn discoveries then they make profits then is competition All that in perpetual motion explained by theories ECONOMIC GROWTH, Productivity is defined as GDP / Aggregate labour hrs = real GDP per labour hour, Property rigths needs ECONOMIC GROWTH, Factors and labor contributes Productivity, Productivity it can be plot as GDP per labour hour vs. capital per labour at a given state of tech -Growth in capital per labor hour causes movements along the productivity curve - Technological growth causes shifts in the productivity curve. - Law of diminishing returns applies to productivity curves, Clasical Growth Theory Increases in real GDP are not permanent 1. GDP increase above subsistence level 2. population increases 3. GDP per person goes down to subsistence leve explained by theories ECONOMIC GROWTH, to invest in human capital contributes Productivity, to discover new tech contributes Productivity