by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How to Measure Productivity An economy’s rate of productivity growth is closely linked to the growth rate of its GDP per capita, although the two are not identical. For example, if the percentage of the population who holds jobs in an economy increases, GDP per capita...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Effect of Sustained Economic Growth?Nothing is more important for people’s standard of living than sustained economic growth. Even small changes in the rate of growth, when sustained and compounded over long periods of time, make an enormous difference in...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How to Convert Currencies with Exchange Rates?To compare the GDP of countries with different currencies, it is necessary to convert to a “common denominator” using an exchange rate, which is the value of one currency in terms of another currency. We express exchange...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Growth Accounting Studies?Growth accounting studies seek to determine the extent to which physical and human capital deepening and technology have contributed to growth. The usual approach uses an aggregate production function to estimate how much of per...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How well does GDP Measure Society Well-Being?The level of GDP per capita clearly captures some of what we mean by the phrase “standard of living.” Most of the migration in the world, for example, involves people who are moving from countries with relatively low GDP...
