AB/204 AB204 AB 204 UNIT 6 DISCUSSION 1

AB 204 UNIT 6 DISCUSSION 1

Unit 6: Economic Growth and Loanable Funds Market - Discussion

General Information:

To be an effective learning tool the Discussion Board topics require your active discussion of the topic with at least two of your classmates.

• First post made during, or before, Saturday.
• Posts on at least 3 different days.
• Responses to at least two other classmates.
• Substantive posts that stimulate further active discussion, posts that accurately reflects the learning, that are logical, and clearly presented with correct spelling, word usage, and grammar.
• To be counted as a substantial post, your main post to the Discussion topics should be at least 200 words per Discussion topic.

Long Term Economic Growth

The Discussion topics focus on the long term economic growth, and the specific discussion areas measuring economic growth, natural resources and economic growth, the role of government and the roles of saving, investment and financial system in economic growth.

Respond to two of the following Discussion topics. Read Chapters 12 and 13, and remember to include references and links to the websites that are important contributors to your posts (comments).

Topic 1

The long-run growth is measured as the increase in real GDP per capita and this measure has changed over time and it also varies across countries. A country’s standard of living depends on its ability to produce goods and services (productivity).

1. How do we measure long-term economic growth of a country? What are the key determinants of long-run economic growth?
2. What is the relationship between economic growth and productivity? What is the major source of growth in labor productivity?