[经济学]宏观经济学课件及习题第4章.pptVIP

Chapter 7: Economic Growht, Productivity, and Living Standards Important Concepts Compound interest 复利 Diminishing returns to capital 资本收益递减 Entrepreneur 企业家 Chapter outline The sources of economic growth and rising living standards in the modern world Analyze each of there factors and discuss its implications for government policies to promote growth Introduction “Which would you rather be? An ordinary, middleclass American living today, or the richest person in America at the time of George Washington?” Ⅰ.the remarkable rise in living standards: the record Compound interest Why nations become rich: the crucial role of average labor productivity Real GDP per Person In Selected Countries, 1870-2003 (in 2000 U.S. Dollars) Real GDP per Person in Five Industrialized Countries, 1870 - 2003 Observation The variety, quality, and quantity of goods and services increased enormously during the 19th and 20th centuries, as reflected in real per capita GDP. Real GDP per Person In Selected Countries, 1870-2000 (in 1995 U.S. Dollars) Real GDP per Person In Selected Countries, 1870-2003 (in 2000 U.S. Dollars) Compound Interest The payment of interest not only on the original deposit but on all previously accumulated interest Why “Small” Differences in Growth Rates Matter Compound Interest Suppose: In 1800 $10 deposited @ 4% interest In 2005 the account is worth $25,507.50 $10 x (1.04)205 = $31,033.77 Why “Small” Differences in Growth Rates Matter Compound Interest Economic growth rates are similar to compound interest rates. Government policies that affect the long-term growth rate by a small amount will have a major economic impact. Why Nations Become Rich: The Crucial Role of Average Labor Productivity Question What determines a nation’s economic growth rate? Some definitions: Y = real GDP N = number of employed workers POP = total population Real GDP Per Person Real GDP Per Person Why Nations Become Rich: The Crucial Role of Average Labor Productivity What determines a na