Monday
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 9 The Real Economy in the Long Run Chapter 25 of 36 Production and Growth Section 10 of 23 … We have determined a society's standard of living depends on its productivity. Its productivity depends on · physical capital per worker · human capital per worker · natural resources per worker · technological knowledge · society’s intangible capital including rule of law … Things government can promote and strengthen to increase productivity and living standards include 1· saving and investment 2· investment from abroad 3· education 4· health and nutrition 5· property rights and political stability 6· free trade 7· research and development 8· population growth … Capital is a produced factor of production, and a society can change its amount of capital. If this year the economy produces new capital goods then next year it will have a larger capital stock and be able to produce more goods and services. So, one...