chapter 22 part 1
crowding out effect definition
what is when the government runs a budget deficit, r increases, leading to less capital purchases, which decreases economic growth?
dissaving definition
what is negative saving?
per capita definition
what is per person?
the economy's potential output
what is the natural rate of output?
the name of the state in classical growth theory
what is steady state?
national saving definition
what is private + public saving?
budget surplus formula
what is T > G?
the public policies that assist economic growth
what is savings & investment, infrastructure, research & development, property rights, free trade, education and institutions?
future value formula
what is present value * (1+GR)^n = future value
the name of the effect in convergence
what is the catch-up effect?
private saving formula
what is Y - T - C?
equilibrium definition
what is where S & D intersect?
the rule of 70 formula
what is 70 divided by the growth rate = x2?
the rule of 70 definition
what is shows how long it will take for a nation to double its output based on its growth rate?
the solow growth model
what is *judges choice*?
public saving formula
what is T - G?
budget deficit formula
what is T < G?
the causes of economic growth
what is physical capital, human capital, natural resources and technology?
growth rate definition
what is the percentage that a nation's real GDP per capita has increased in one year?
diminishing marginal returns and the production function definition
what is as you add more & more capital to a nation, it produces less & less additional output per worker?
supply of loanable funds definition
what is as real interest rates increase, the amount of loanable funds supplied increases?
demand for loanable funds definition
what is as real interest rates decrease, the amount of loanable funds demanded by firms and households for investment purposes increases?
economic growth definition
what is measured by the annual percentage change in real output of goods & services per capita?
the quantity of goods & services that a worker can produce per hour
what is productivity?
the macroeconomic per-worker production function definition
what is the production function shows the maximum amount of RGDP that can be produced per worker based on different amounts of capital per worker?