CLASS NOTES FOR ECONOMICS 252

DR. WILLIAM SHINGLETON

FALL 2004

GROWTH CH 17

LONG-RUN AGGREGATE SUPPLY LRAS

REAL GDP

REAL GDP PER CAPITA

MEASURING THE GROWTH RATE

GDP GROWTH = LABOR FORCE GROWTH + PRODUCTIVITY GROWTH

SOURCES OF LABOR FORCE GROWTH

POPULATION GROWTH

IMMIGRATION

EMPLOYMENT RATE

OFFICIALLY LABOR FORCE PARTICIPATION RATE

MARGINAL TAX RATE

HUMAN CAPITAL/EDUCATION

HEALTH CARE

RETIREMENT PLAN STRUCTURE

SOURCES OF PRODUCTIVITY GROWTH

PHYSICAL CAPITAL

REQUIRES SAVING AND INVESTMENT

HUMAN CAPITAL

SKILLS

EDUCATION

HEALTH

TECHNOLOGY

MANAGEMENT

INFRASTRUCTURE

REQUIRES SAVING AND INVESTMENT

NEW IDEAS

WHERE DO THE BRIGHTEST ONES GO?

ARE THERE LIMITS TO GROWTH?

MALTHUS

GEOMETRIC GROWTH: POPULATION

ARITHMETIC GROWTH: FOOD

POLICY CONCLUSIONS

WRONG ON BOTH COUNTS

MEADOWS AND EHRLICH/ENVIRONMENT

GROWTH IN RESOURCE USE

ROLE OF PRICES

SUMMARY

KEYNES: ROLE OF NEW IDEAS