lecture 6

1. Q: What is real GDP per capita in PPPs?
   A: Real GDP per capita in PPPs adjusts GDP for inflation, population size, and price level differences between countries, allowing for meaningful cross-country comparisons.

2. Q: What are the Kaldor facts?
   A: The Kaldor facts are empirical regularities about economic growth, including constant labor productivity growth, constant capital per worker growth, and constant real interest rates.

3. Q: What is the Solow growth model?
   A: The Solow growth model decomposes economic growth into contributions from technology, capital, and labor: 

4. Y(t)=A(t)K(t)αL(t)1−α

5. Y(t)=A(t)K(t)

6. α

7. L(t)

8. 1−α

9. .

10. Q: What is the residual in growth accounting?
    A: The residual captures the portion of GDP growth not explained by capital or labor, often attributed to technological progress.

11. Q: How long does it take for a country to double its GDP per capita at a 2% growth rate?
    A: It takes approximately 35 years to double GDP per capita at a 2% growth rate.

Cloze Deletions

1. Real GDP per capita in PPPs adjusts GDP for inflation, population size, and price level differences between countries.

2. The Kaldor facts include constant labor productivity growth, constant capital per worker growth, and constant real interest rates.

3. The Solow growth model decomposes economic growth into contributions from technology, capital, and labor: 

4. Y(t)=A(t)K(t)αL(t)1−α

5. Y(t)=A(t)K(t)

6. α

7. L(t)

8. 1−α

9. .

10. The residual in growth accounting captures the portion of GDP growth not explained by capital or labor.

11. At a 2% growth rate, it takes approximately 35 years to double GDP per capita.

Reverse Cards

1. Term: Real GDP per capita in PPPs
   Definition: GDP adjusted for inflation, population size, and price level differences between countries.

2. Term: Kaldor Facts
   Definition: Empirical regularities about economic growth, including constant labor productivity growth and constant real interest rates.

3. Term: Solow Growth Model
   Definition: A model that decomposes economic growth into contributions from technology, capital, and labor.

4. Term: Residual
   Definition: The portion of GDP growth not explained by capital or labor, often attributed to technological progress.

5. Term: Doubling Time
   Definition: The time it takes for GDP per capita to double at a given growth rate.

Image Occlusion

1. Image: GDP per Capita Growth Graph
   Occlusion: Label the exponential growth and linear growth in logs.

2. Image: Kaldor Facts Chart
   Occlusion: Label the constant labor productivity, capital per worker, and real interest rates.

Tags

• Economic Growth

• Kaldor Facts

• Solow Model

• Growth Accounting

• Doubling Time