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 2 of 23 … The average income in a rich country including the United States, Japan, and Germany is more than ten times the average income in a poor country including India, Indonesia, Nigeria. People in richer countries have better nutrition, housing, sanitation, healthcare, longer life expectancy, and more automobiles, telephones, televisions. Over time, within a country there can be large standard of living changes . … Over the past century in the United States average income, as measured by real GDP per person, has grown yearly by about two percent. Although two percent might seem small, per the “rule of 72” where you divide 72 by the rate of growth a two percent growth rate means average income doubles about every 35 years. This has resulted in average income today in the U.S. of about eight times that of a century a...