1002-ch12-曼昆 宏观经济学.ppt

Production and Growth 12 In this chapter, look for the answers to these questions: What are the facts about living standards and growth rates around the world? Why does productivity matter for living standards? What determines productivity and its growth rate? How can public policy affect growth and living standards? US Real GDP Per Capita Growth Rates and the Rule of 70 Growth Rates and the Rule of 70 Growth Rates and the Rule of 70 Small Differences in Growth Rates Are ImportantAustralia vs. Japan (PWT data /) (2) Productivity Recall one of the Ten Principles from Chap. 1: A country’s standard of living depends on its ability to produce gs. This ability depends on productivity, the average quantity of gs produced per unit of labor input. Y = real GDP = quantity of output producedL = quantity of labor so productivity = Y/L (output per worker) A C T I V E L E A R N I N G 1 Discussion Question Which of the following policies do you think would be most effective at boosting growth and living standards in a poor country over the long run? a. Offer tax incentives for investment by local firms b. ” ” ” ” ” by foreign firms c. Give cash payments for good school attendance d. Crack down on government corruption e. Restrict imports to protect domestic industries f. Allow free trade Free Trade Recall: Trade can make everyone better off. Trade has similar effects as discovering new technologies – it improves productivity and living standards. Countries with inward-oriented policies have generally failed to create growth. E.g., Argentina during the 20th century. Countries with outward-oriented policies have often succeeded. E.g., South Korea, Singapore, Taiwan after 1960. A C T I V E L E A R N I N G 1 Discussion Question Which of the following policies do you think would be most effective at boosting growth and living standards in a poor country over the long run? a. Offer tax incentives for investm