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Growth and Recessions – Aggregate Supply and Demand Model

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What causes Growth and Recessions in the Aggregate Demand – Aggregate Supply Model? In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply. The vertical line...

Measuring Productivity

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...

Convert GDP to a Common Currency

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

How to Convert GDP to a Common Currency?Converting GDP of two countries using different currencies requires the use of exchange rates. Exchange rates are expressed either as the units of country A’s currency that need to be traded for a single unit of country B’s...

GDP as a Measure of Society Well-Being

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...

Rule of Law andEconomic Growth?

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

How Does the Rule of Law relate to Economic Growth?Economic growth depends on many factors. Key among those factors is adherence to the rule of law and protection of property rights and contractual rights by a country’s government so that markets can work effectively...
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