Growth Policies General Equilibrium Econom ic Statistic s Growth Theory Potpour ri Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Formula s Board This is the term is used to describe rising RGDP per capita over time Board These are two arguments why sustained economic growth might not be desirable Board This theory claims that as national income rises slower population growth follows because children become more expensive Board This is one reason why growth by capital investment can be particularly expensive for a low income country Board This is why the Solow model predicts higher income countries rely more on technology than capital for further development Board These are the four determinants of aggregate demand Board These are three channels through which an increase in price can have an impact on aggregate demand Board The natural rate of output is a function of these four factors in a country s economy Board These are three theories why prices matter for aggregate supply in the short run but not the long run Board This is one way the economy depicted below could return to long run equilibrium Board These are three examples of payments or production that should not be included in a country s measure of GDP Board These people in the population are not included in official measures of the labor force Board This is one reason why GDP might be a poor measure of a country s economic wellbeing Board This type of unemployment is caused by workers taking time to search for a job they would like or fits their skills Board These are two common criticisms of measures of unemployment used in the United States Board This characteristic of modern growth since the 1800s is known as the Great Divergence Board What is one reason why we use RGDP per capita instead of NGDP to measure growth Board To model a country s production possibilities frontier these are three assumptions we maintain about all of the production plans on the frontier Board What are two roles of the government Board What are two ways a poor country can generate a capital stock Board This is the primary difference between measures of nominal and real GDP Board Under some circumstances this is a potentially negative effect of imposing a minimum wage Board This type of inflation is depicted on the graph below Board The income effect fails to explain why the aggregate demand curve is downward sloping for this reason Board It is through this process that the exchange rate effect suggests higher prices lead to lower aggregate demand Board This formula estimates the additional shift in aggregate demand resulting from a change in spending in the output market Board The following formula yields what economic statistic Board Using the expenditure method this is the formula for calculating GDP Board Given growth rate g and initial GDP this formula yields GDP after T years Board This formula indicates how much does using base year prices versus current prices impact calculations of GDP Board Growth Policies General Equilibrium Econom ic Statistic s Growth Theory Potpour ri Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Done Formula s Final Jeopardy The production of econland is given in the table below Calculate real gdp 2001 base year 2000 Year Batches of Price per Bags of Price per cupcakes batch Sugar bag 2000 100 5 50 2 2001 200 10 75 3 It takes one bag of sugar to make four batches of cupcakes
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