Driving Question
An increase in RGDP per capita over time. Can be shown by outward shifts of PPC & LRAS
What is economic growth?
Production Possibility Frontier
What does PPF stand for?
RGDP per capita growth in this country is low to moderate. It‘s a developed country
What is the U.S.’s/France’s economic growth?
This country has sustained one of the fastest growth periods in world history
What is China?
Dependent on increases in physical capital, human capital, & technology
What is long-run economic growth?
The amount of output per worker. It’s the main driver of economic growth
What is productivity?
Long-run aggregate supply
What does the LRAS stand for?
RGDP growth in this country is high
What is China’s growth?
Policy that shift China from a command economy to a market-oriented system
What is the Open Door Policy of 1978?
Assists workers in producing more goods—machinery, tools, buildings, & tech
What is physical capital?
Caused by changes in demand & supply. Shown by movements along business cycle. Ex.) recessions or booms
What is short-term economic growth?
Increase/decreases in supply for the long-run economic growth of a country
What does the LRAS show?
Very low RGDP growth from these 2 countries
What is Argentina & Zimbabwe?
Caused China to have lower taxes regulations in these regions. The government encouraged foreign countries to build factories in these regions as well
What are the special economic zones?
Improves worker efficiency and innovation—education, training, skills, experience
What is human capital?
A steady increase in an economy’s capacity to produce goods & services. Shown by outward shift of PPC or rightward shift of LRAS
What is long-term economic growth?
Shows maximum combination of 2 goods that an economy can produce given the resources and technology they have
What does PPF show?
2022 bill that will improve U.S. economic growth over the next decade
What is IIJA?; Infrastructure Investment & Jobs Act?
Gave China full access to global markets. As a result, China became the world’s largest exporter.
What is the Chinese World Trade Organization membership?
Improves production methods & creates new products
What is technology?
Physical capital, human capital, & technology
What are the primary drivers of sustainable economic growth?
Shift caused by investment in capital goods, infrastructure, tech improvements, increased education, and an increased labor force
What is an outward shift of the PPF?
Will most likely negatively affect economic growth & reduce human capital investment
What are recent cuts on education spending?
Heavy state-led investment, industrial policy, & human capital policies
What are Chinese policies that helped economic growth?
The formation of capital stock
What is the key to economic growth?