Explain growth theory, Macroeconomics

Assignment Help:

Q. Explain Growth theory?

The purpose of this topic is to try to explain growth in GDP. The models in this topic are very different from the rest of the models as they use only production function and factors of production to explain growth. Growth models are significant, for instance, if you want to understand why some countries grow faster and have a higher living standard than other countries. 

By growth, we mean percentage change in real GDP. We use real GDP to eliminate the effect of inflation. In this topic, it is perfectly OK to think of inflation as being zero in which case real and nominal GDP are the same. 

In this topic we begin by describing the aggregate production function. The rest of this topic will look at some different growth theories.


Related Discussions:- Explain growth theory

Description of var, In order to observe the correlations between each varia...

In order to observe the correlations between each variable, the most effective method to use is Vector Autoregression (VAR). VAR estimation uses a system of simultaneous equations

Velocity and the quantity equation, when the income velocity of circulation...

when the income velocity of circulation (V) rises, why does the economy''s total output must rise?

Nation of tigerland imported goods, Last year, the nation of Tigerland impo...

Last year, the nation of Tigerland imported goods totaling $500 million and exported products totaling $386 million. Tigerland experienced a(n).

Show the investment function in the IS-LM model, Q. Show the investment fun...

Q. Show the investment function in the IS-LM model? The investment function in the IS-LM model Investment was an exogenous variable in cross model owing to the fact that

Economic-social-cultural and political-legal factors, For each of the host ...

For each of the host countries you have selected for examination (PEST-C analysis), conduct a preliminary assessment of the geographic, economic, social-cultural, and political-leg

Equilibrium in both the goods and in the money market, Equilibrium in both ...

Equilibrium in both the goods and in the money market  If both the goods- and the money markets are to be in equilibrium... ...if P increases, Y must fal

Price results in the efficient quantity, The Price ceiling is the law that ...

The Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price

How large is the money supply, Assume that the following data describe the ...

Assume that the following data describe the condition of the banking system: Total Reserves                         $200 billion Transactions Deposited          $700 billion

Unemployment, critically analyse the ways at which the govement of zimbabwe...

critically analyse the ways at which the govement of zimbabwe has put in place to address unequal employment opportunitiesbetween men andwomen

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd