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

Interest rate determination, Interest rate determination  ...

Interest rate determination  The real interest rate r will be equal to the equilibrium real interest rate In the classical model we define equil

Reducing the budget deficit, Reducing the budget deficit by cutting governm...

Reducing the budget deficit by cutting government spending could conceivably: A. increase income if interest rates rise enough and government spending is more productive than priva

Economy if price ceiling or price floor were removed, What is the impact on...

What is the impact on the economy if price ceiling or price floor were removed? Ans) Price ceiling is government system or laws setting price floors or ceilings that forbid the

Budget balanced, Given a four sector economy how do you find the budget bal...

Given a four sector economy how do you find the budget balanced

What is meant by the term national debt?, When a government spends more tha...

When a government spends more than it receives in taxes; it runs a budget deficit, which is generally covered by issuing debt obligations to domestic and/or international investors

Financial crisis, how adverse selection has an impact on financial crisis

how adverse selection has an impact on financial crisis

The income tax rate is reduced, If income falls below its potential and the...

If income falls below its potential and the income tax rate is reduced, this will: A. raise the passive deficit but reduce the structural deficit. B. raise both the passive and str

Circular flow of income, Discuss how income flows in governed economy, frug...

Discuss how income flows in governed economy, frugal economy, spend their economy.

Illustrate neo-classical growth model, Q. Illustrate neo-classical growth m...

Q. Illustrate neo-classical growth model? The main purpose of another significant growth model, neo-classical growth model, is to explain how it is possible to have a permanent

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