1. Module Productivity and Growth KRUGMAN'S MACROECONOMICS for AP* 38 Margaret Ray and David Anderson

2. What you will learn in this Module : How changes in productivity are illustrated using an aggregate production function How growth has varied among several important regions of the world and why the convergence hypothesis applies to economically advanced countries

3. Accounting for Growth: The Aggregate Production Function Aggregate Production Function Diminishing Returns to Physical Capital Growth Accounting Total Factor Productivity

4. Accounting for Growth: The Aggregate Production Function

5. What About Natural Resources? What About Natural Resources? Other things equal, more natural resources leads to higher GDP per capita Other things are often NOT equal Malthus (predicted Limited resources would lead to lower Productivity – could not predict the Improvements in technology.)

6. Success, Disappointment, and Failure East Asia’s Miracle convergence hypothesis Latin America’s Disappointment Africa’s Troubles

7. Table 38.1 A Hypothetical Example: How Physical Capital per Worker Affects Productivity, Holding Human Capital and Technology Fixed Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

8. Unnumbered Figure 38.1 The Information Technology Paradox Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

9. Figure 38.3 Success and Disappointment Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers

10. Unnumbered Figure 38.2 Are Economies Converging? Ray and Anderson: Krugman’s Macroeconomics for AP, First Edition Copyright © 2011 by Worth Publishers