Economic Growth Basics
What does GDP measure?
Total output
Who developed the Solow model?
Robert slow
What type of factor drives endogenous growth?
Internal factors
What policy uses taxes and spending?
Fiscal policy
What is globalization?
Economic integration
What is real GDP adjusted for?
Inflation
What are the two main inputs in Solow’s model?
Labor and capital
What is human capital?
Skills and education
What policy controls money supply?
Monetary policy
What trap slows middle-income countries?
Middle-income trap
Which factor directly raises productivity?
Technology
What is the steady state?
Stable equilibrium
Which economist is linked to endogenous growth theory?
Paul Romer
Lower interest rates usually affect investment how?
Increase investment
What does convergence theory predict?
Poor countries catch up
What happens when capital per worker increases?
Output rises
What causes diminishing returns to capital?
Excess capital
Why are ideas considered non-rival goods?
Unlimited use
What can high inflation reduce?
Purchasing power
What is sustainable growth?
Long-term balanced growth
Why is productivity crucial for long-run growth?
Sustains income
What drives growth in the long run in Solow’s model?
Technological progress
What prevents diminishing returns in Romers theory?
Innovation
Why do governments subsidize R&D?
Boost innovation
What key issue can limit future growth globally?
Climate change