Macroeconomics 28: Economic Growth

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20 Terms

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Economic Growth
An increase in real GDP occurring over some period.
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Real GDP per Capita
An increase in real GDP per capita occurring over some period.
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GDP Growth Rate
The economic growth rate calculated as a percentage, either per quarter or yearly.
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Modern Economic Growth (MEG)
Characterized by sustained and ongoing increases in economic growth causing dramatic increases in standard of living within less than a single lifetime.
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Strong Property Rights
Necessary structures that promote investment by ensuring that individuals' assets are protected from theft.
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Patents and Copyrights
Legal protections necessary for the flow of innovative technology and new ideas.
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Efficient Financial Institutions
Institutions that channel savings to businesses, enabling societal investment and innovation.
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Literacy and Widespread Education
Essential for developing new ideas and technologies, as well as an adequately educated workforce.
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Demand Factor
Achieving higher production potential requires households, businesses, and governments to purchase expanding output.
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The Efficiency Factor
To maximize growth, a society must achieve economic efficiency and full employment.
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Labor Productivity Growth
The growth rate that links real output, real income, and real wages, and is essential for improving living standards.
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Globalization
The process that can help poorer countries quickly catch up in industrialization and growth.
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Uneven Distribution of Growth
The phenomenon where modern economic growth spreads unevenly, resulting in disparities in living standards.
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Economic Efficiency
The optimal use of resources that maximizes economic well-being.
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Innovation
The introduction of new ideas or products, which is key to driving economic growth.
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Network Effects
The phenomenon where a product's value increases as more people use it.
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In Defense of Growth
The argument that growth is the primary path to greater material abundance and higher living standards.
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Microchip and Information Technology
The core element driving increased labor productivity due to innovations in digital industry.
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Economic Historians
Scholars who study historical economic developments, including the onset of industrialization and MEG.
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Service Economy
An economy focused on providing services rather than manufacturing goods, leading to differences in job quality and pay.