1. Eco 200 – Principles of Macroeconomics
Chapter 17: Economic growth

2. Economic growth Measured by annual rate of change in: real GDP
per capita real GDP

3. Rule of 72
Rule of 72:
Approximate # of years for a balance to double = 72 / growth rate for the variable

4. Economic growth and economic welfare
Problems with using economic growth rate as a measure of social welfare:
income distribution

5. Economic growth and economic welfare
Problems with using economic growth rate as a measure of social welfare:
income distribution
quality of life

6. Economic growth and economic welfare
Problems with using economic growth rate as a measure of social welfare:
income distribution
quality of life
leisure time

7. Economic growth and economic welfare
Problems with using economic growth rate as a measure of social welfare:
income distribution
quality of life
leisure time
externalities

8. Determinants of growth
changes in the quantity and quality of available resources

9. Determinants of growth
changes in the quantity and quality of available resources
changes in technology

10. Economic growth
Economic growth = growth rate of TFP + growth rate of resources