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
quality of life
leisure time
externalities

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

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