Tuesday
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 19 of 21 … 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 … 8· Population growth The on-going debate over the effects of a growing world population includes these topics: a· Stretching natural resources b· Diluting the capital stock c· Promoting technological progress … b· Diluting the capital stock Some modern theorists of economic growth emphasize population growth effects on capital accumulation and use. According to these theorists high population growth reduces GDP per worker because fast growth in the number of workers forces a thin spread of the capital stock. Each worker...