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Economic Growth

Terms

Summary

Labor productivity growth

Capital  -  Physical and intellectual property that is utilized by labor in the production of goods and services.
Capital Expenditure  -  Money spent on increasing the amount of capital in a firm or an economy.
Capital Stock  -  The total amount of capital in an economy or in a firm.
Convergence  -  The theory that all industrialized countries tend to approach one another over time in terms of GDP per capita.
GDP per Capita  -  Nominal GDP divided by the total population. This indicates the amount of a country’s total output that each member of the population theoretical has access to.
Golden Rule Level of Capital  -  The level of capital where consumption and savings are optimized.
Growth Level  -  The long term rate of growth.
Growth Rate  -  The short term rate of growth.
Human Capital  -  Intellectual property, like education and scientific discoveries, that affects the level of output in a firm or country.
Industrialized  -  Describes countries that have an infrastructure and government amenable to industrial development.
Infrastructure  -  Physical machinery and transportation that is in place to aid in industrialization.
International Market  -  The market for goods and services that spans countries.
Labor  -  Workers who utilize capital to produce output.
Labor Productivity Growth  -  An increase in the amount of output a given unit of labor can produce.
Nominal GDP  -  The total currency value of all goods and services produced in a national economy.
Open Market  -  A market for the sale and purchase of goods and services in which all countries may compete.
Output  -  Goods and services produced by firms.
Physical Capital  -  Machinery used by labor in the production of goods and services.
Production  -  The creation of output.
Production Capabilities  -  The capital that allows a given amount of potential output.
Productivity  -  The ability to produce output.
Prosperity  -  The creation of a high standard of living.
Savings Rate  -  The percentage of total income that is saved for future consumption.
Standard of living  -  The level of economic wellbeing enjoyed by members of a population.
Technological Progress  -  The advancement of technology over time due to scientific discoveries.
Trade  -  The purchase and sale of goods and services between entities.
Unemployment  -  The condition of being without a job but also actively searching for one.
Wage  -  Money paid or received in exchange for labor.

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