宏观经济学HUBBARD_MACRO_SG_09的.pdfVIP

Chapter9(21)

EconomicGrowth,the

FinancialSystem,and

BusinessCycles

ChapterSummary

Inthischapter,youlearnaboutthreetopics:long-termeconomicgrowth,thefinancialmarketsthat

channelfundsfromsaverstoborrowers,andthepropertiesofbusinesscycles.Thebusinesscyclerefers

toalternatingperiodsofeconomicexpansionandeconomicrecession.Financialmarkets(likethestock

andbondmarkets)andfinancialintermediaries(likebanks,creditunions,pensionfunds,andinsurance

companies)togethercomprisethefinancialsystem.Long-runeconomicgrowthistheprocessbywhich

risingproductivityincreasesthestandardoflivingofthetypicalperson.Becauseofeconomicgrowth,the

typicalAmericantodaycanbuyalmosteighttimesasmuchasthetypicalAmericanof1900.Long-run

growthismeasuredbyincreasesinrealGDPpercapita.IncreasesinrealGDPpercapitadependon

increasesinlaborproductivity.Laborproductivityisthequantityofgoodsandservicesthatcanbe

producedbyoneworkerorbyonehourofwork.Economistsbelievetwokeyfactorsdeterminelabor

productivity—thequantityofcapitalperhourworkedandtheleveloftechnology.Economistsoften

discusseconomicgrowthintermsofgrowthinpotentialGDP,whichisthelevelofGDPattainedwhen

allfirmsareproducingatcapacity.

LearningObjectives

Whenyoufinishthischapter,youshouldbeableto:

1.Discusstheimportanceoflong-runeconomicgrowth.Thebusinesscycleisaperiodofeconomic

expansionfollowedbyaperiodofeconomicrecession.Theexpansionphaseofabusinesscycleends

withabusinesscyclepeak,followedbyaperiodofcontractionorrecession.Long-runeconomic

growthistheproce