Previously you came to know about the potential of economic growth and how it helps in increasing the income of any nation. It takes an average human life span to get their standard of living as twice the percentage of the original. This is only possible when growth rate percentage is 1%. But standard of living for any country will become double if every decade witnessed a certain growth rate percentage- 7%.
This aspect, in general, presents few questions in front of us. Few of them are:
- What is the speed with which other economies are growing?
- What is the pace with which our economy is growing?
- Are poor / developing countries able to catch up with the rich nations?
- If there are gaps between the 2, did this gap remain same or did it widen?
Answers to all of these are expressed in next chapter.
Links of Previous Main Topic:-
- Definition of Economics
- Economic Problem
- Market Equilibrium
- Employment and Unemployment
- Economic Growth Macroeconomics
- The Basics of Economic Growth
Links of Nextย Macroeconomics Topics:-
- How Potential GDP Grows
- Why Labor Productivity Grows
- Preconditions for Labor Productivity Growth
- Physical Capital Growth
- Human Capital Growth
- Technological Advances
- Growth Theories Evidence and Policies
- Classical Growth Theory
- Neoclassical Growth Theory
- New Growth Theory
- New Growth Theory Versus Malthusian Theory
- Sorting Out the Theories
- The Empirical Evidence on the Causes of Economic Growth
- Economic Growth Macroeconomics
- Policies for Achieving Faster Growth
- The Exchange Rate and the Balance of Payments
- The Dollar and Carry Trade
- Expenditure Multiplier Know the Keynesian Model