Principles of Macroeconomics: Chapter 12 - N. Gregory Mankiw

Chapter 12<br /> <br /> Principles of Macroeconomics, N. Gregory Mankiw (Fifth Edition)<br /> <br /> Objectives<br />  Economic growth around the world  Productivity’s role  The factors that determine a country’s productivity.  Economic growth and public policy<br /> <br /> Review<br />  Principle 8: A Country’s Standard of Living<br /> <br /> Depends on Its Ability to Produce Goods and Services.<br /> <br /> Economic Growth Around the World<br />  The data on real GDP per person show that living standards vary widely from country to country<br />  The growth rate measures how rapidly real GDP<br /> <br /> per person grew in the typical year<br />  Because of differences in growth rates<br />  Ranking of countries by income changes<br /> <br /> substantially over time<br /> <br /> Productivity<br />  = the quantity of goods and services produced<br /> <br /> from each unit of labor input<br />  When a nation’s workers are very productive,<br /> <br /> real GDP is large and incomes are high.<br />  When productivity grows rapidly, so do living<br /> <br /> standards.<br /> <br />