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

Limitations of rational expectations school, Limitations of the theory of r...

Limitations of the theory of rational expectations: Critics of this theory note that if policy makers have more information about the economy or their own actions than d

Positive and normative economics-introduction, Positive and normative econo...

Positive and normative economics -introductiion Economic theory or analysis evolves from basic propositions about how individual human beings (or individual economic units) beh

Real output, SUppose nominal GDP increases from 5.8 trillion to 6 trillion....

SUppose nominal GDP increases from 5.8 trillion to 6 trillion. The GDP deflator rose over that same year by 3.9 percent. By what percent does the real output increase?

Define min and max regret approach, The Red Lobster sells fresh seafood. Re...

The Red Lobster sells fresh seafood. Red Lobster receives daily shipments of farm-raised fish from a nearby supplier. Each fish cost $2.50 and is sold for $4.00. To maintain its re

Determinants of balance of payments, Determinants of balance of payments: ...

Determinants of balance of payments: Broadly speaking, trend behaviour of merchandise exports and imports along with their  terms of  trade,  net invisible earnings and autono

Measurement of national income, what are the two precautions required while...

what are the two precautions required while estimating national income by value added method?

Circular flow model and the supply and demand curves, Write a one paragraph...

Write a one paragraph summary and three paragraphs that take the information in the article and relate it specifically to the circular flow model and the supply and demand curves.

#title., it has been argued that economic development of developing countri...

it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run

Perfect competion, discuss the contention that the existance of a labour ma...

discuss the contention that the existance of a labour market in a perfect competion is a fallacy

Types of market, #five differnces between a monopoly market and a monopolis...

#five differnces between a monopoly market and a monopolistic market

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