Ch 17 - Growth and Productivity: Long-Run Possibilities Flashcards Preview

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Flashcards in Ch 17 - Growth and Productivity: Long-Run Possibilities Deck (14)
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1
Q

economic growth

A

an increase in output (real GDP); an expansion of production possibilities

2
Q

production possibilities

A

the alternative combinations of final goods and services that could be produced in a given time period with all available resources and technology

3
Q

real GDP

A

the time period used for comparative analysis; the basis for indexing, e.g., of price changes

4
Q

growth rate

A

percentage change in real output from on period to another

5
Q

GDP per capita

A

= total GDP / total population; average GDP

6
Q

labor force

A

all persons over age 16 who are either working for pay or actively seeking paid employment

7
Q

employment rate

A

the percentage of the adult population that is employed

8
Q

productivity

A

output per unit of input, for example, output per labor-hour

9
Q

human capital

A

the knowledge and skills possessed by the workforce

10
Q

net investment

A

= gross investment - depreciation

11
Q

crowding out

A

a reduction in private-sector borrowing (and spending) caused by increased government borrowing

12
Q

crowding in

A

an increase in private-sector borrowing (and spending) caused by decreased government borrowing

13
Q

geometric growth

A

an increase in quantity by a constant proportion each year

14
Q

arithmetic growth

A

an increase in quantity by a constant amount each year