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Презентация на тему Economic Growth

Economic GrowthIncrease in real GDP or real GDP per capita over some time periodPercentage rate of growthGrowth as a goalArithmetic of growth: Rule of 70Approximatenumber of yearsrequired to doublereal GDP=70annual percentage rateof growthLO125-
McGraw-Hill/Irwin    Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Economic GrowthIncrease in real GDP or real GDP per capita over some Economic GrowthGrowth in U.S. real GDP 1950-2009Increased 6 fold 3.2% per year Modern Economic GrowthBegan with the Industrial Revolution in late 1700sOngoing increases in Modern Economic GrowthBegan in BritainHas spread slowlyStarting date main cause of worldwide Modern Economic Growth			  Real GDP	   Real GDP	  Average Modern Economic GrowthLO325- Institutional Structures of GrowthStrong property rightsPatents and copyrightsEfficient financial institutionsLiteracy and widespread educationFree tradeCompetitive market systemLO325- Determinants of GrowthLO325- Accounting for GrowthFactors affecting productivity growthTechnological advance (40%)Quantity of capital (30%)Education and Productivity GrowthAverage rate of growth1.5% per year 1973-19952.8% per year 1995-2009Affects real Productivity GrowthMicrochip/information technologyNew firms and increasing returnsSources of increasing returnsMore specialized inputsSpreading Economic GrowthIs economic growth desirable and sustainable?The antigrowth viewEnvironmental and resource issuesIn Economic GrowthGrowth is the path to greater material abundanceResults in higher standards Global PerspectiveLO525-
Слайды презентации

Слайд 2 Economic Growth
Increase in real GDP or real GDP

Economic GrowthIncrease in real GDP or real GDP per capita over

per capita over some time period
Percentage rate of growth
Growth

as a goal
Arithmetic of growth: Rule of 70

Approximate
number of years
required to double
real GDP

=

70

annual percentage rate
of growth

LO1

25-


Слайд 3 Economic Growth
Growth in U.S. real GDP 1950-2009
Increased 6

Economic GrowthGrowth in U.S. real GDP 1950-2009Increased 6 fold 3.2% per

fold
3.2% per year
Growth in U.S. real GDP

per capita
Increased more than 3 fold
2% per year
Qualifications
Improved products and services
Added leisure
Other impacts

LO1

25-


Слайд 4 Modern Economic Growth
Began with the Industrial Revolution in

Modern Economic GrowthBegan with the Industrial Revolution in late 1700sOngoing increases

late 1700s
Ongoing increases in living standards
Time for leisure
Social change
Democracy
Human

lifespan doubled

LO2

25-


Слайд 5 Modern Economic Growth
Began in Britain
Has spread slowly
Starting date

Modern Economic GrowthBegan in BritainHas spread slowlyStarting date main cause of

main cause of worldwide differences in living standards
Catching up

is possible
Leader countries invent technology
Follower countries adopt technology
Can grow faster

LO2

25-


Слайд 6 Modern Economic Growth
Real GDP

Modern Economic Growth			 Real GDP	  Real GDP	 Average annual			 per

Real GDP Average annual
per capita,

per capita, growth rate,
Country 1960 2007 1960-2007

United States $ 14,766 $42,887 2.3%
United Kingdom 11,257 32,181 2.3
France 9,347 29,663 2.5 Ireland 6,666 41,625 4.0
Japan 5,473 30,585 3.7
Singapore 4,149 44,619 5.2
Hong Kong 3,849 43,121 5.3
South Korea 1,765 23,850 5.7

Figures are in 2005 dollars

Source: Penn World Table version 6.3, pwt.econ.upenn.edu

LO2

25-


Слайд 7 Modern Economic Growth
LO3
25-

Modern Economic GrowthLO325-

Слайд 8 Institutional Structures of Growth
Strong property rights
Patents and copyrights
Efficient

Institutional Structures of GrowthStrong property rightsPatents and copyrightsEfficient financial institutionsLiteracy and widespread educationFree tradeCompetitive market systemLO325-

financial institutions
Literacy and widespread education
Free trade
Competitive market system
LO3
25-


Слайд 9 Determinants of Growth
LO3
25-

Determinants of GrowthLO325-

Слайд 10 Accounting for Growth
Factors affecting productivity growth
Technological advance (40%)
Quantity

Accounting for GrowthFactors affecting productivity growthTechnological advance (40%)Quantity of capital (30%)Education

of capital (30%)
Education and training (15%)
Economies of scale and

resource allocation (15%)

LO3

25-


Слайд 11 Productivity Growth
Average rate of growth
1.5% per year 1973-1995
2.8%

Productivity GrowthAverage rate of growth1.5% per year 1973-19952.8% per year 1995-2009Affects

per year 1995-2009
Affects real output, real income, and real

wages
Pay higher wages without lowering profit

LO4

25-


Слайд 12 Productivity Growth
Microchip/information technology
New firms and increasing returns
Sources of

Productivity GrowthMicrochip/information technologyNew firms and increasing returnsSources of increasing returnsMore specialized

increasing returns
More specialized inputs
Spreading of development costs
Simultaneous consumption
Network effects
Learning

by doing
Global competition

LO4

25-


Слайд 13 Economic Growth
Is economic growth desirable and sustainable?
The antigrowth

Economic GrowthIs economic growth desirable and sustainable?The antigrowth viewEnvironmental and resource

view
Environmental and resource issues
In defense of economic growth
Higher standard

of living
Human imagination can solve environmental and resource issues

LO5

25-


Слайд 14 Economic Growth
Growth is the path to greater material

Economic GrowthGrowth is the path to greater material abundanceResults in higher

abundance
Results in higher standards of living
Increases leisure time
Allows for

the expansion and application of human knowledge

LO5

25-


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