Chapter 11: Saving, Capital Accumulation, and Output

These flashcards cover key vocabulary and concepts related to saving, capital accumulation, and output as discussed in Chapter 11.

Dynamic Economics

A branch of economics that examines how economic variables evolve over time.

Steady State

The state in which output per worker and capital per worker are no longer changing.

Capital Accumulation

The process of gathering and increasing capital assets over time.

Output

The total amount of goods and services produced in an economy.

Depreciation

The reduction in value of an asset over time, due to wear and tear.

Investment

The action of allocating resources, usually money, in order to generate income or profit.

Saving Rate

The proportion of income that is saved rather than spent on consumption.

Long-Run Equilibrium

A condition where all economic variables remain constant over time once equilibrium is reached.

Capital per Worker

The amount of capital available for each worker in the economy.

Growth Rate of GDP

The rate at which a nation's Gross Domestic Product increases over a specific period.