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Principles of Macroeconomics: Chapter 12 - N. Gregory Mankiw

Principles of Macroeconomics: Chapter 12 - Production and Growth presents Economic growth around the world, productivity’s role, the factors that determine a country’s productivity, economic growth and public policy. | Chapter 12 Principles of Macroeconomics, N. Gregory Mankiw (Fifth Edition) Objectives Economic growth around the world Productivity’s role The factors that determine a country’s productivity. Economic growth and public policy Review Principle 8: A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services. Economic Growth Around the World The data on real GDP per person show that living standards vary widely from country to country The growth rate measures how rapidly real GDP per person grew in the typical year Because of differences in growth rates Ranking of countries by income changes substantially over time Productivity = the quantity of goods and services produced from each unit of labor input When a nation’s workers are very productive, real GDP is large and incomes are high. When productivity grows rapidly, so do living standards.