Introduction to early studies of economic growth theory
1, objective. To understand the meaning of economic growth 2
.To understand the model of production function for both the short and long term economic growth
13.1. Economic growth is the process of causing
expansion of production capacity, which will result in the country!Provide products according to potential. Continued to grow long products according to potential level
products that country produced during one time using factors. Manufacturing countries are fully available
.Such as the use of labor and capital factor fully, in accordance with the national product, the pure water.
at the level of full employment (YF)
as can be seen from the graph 13.1
calculation of growth rate of real income
. GT = YT - YT-1 by YT
.G = the rate of growth of real income in the period T
Yt = product (income), real time periods T
Yt-1 = product (income), real time periods. T - 1
.
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