by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Aggregate Production Function?The aggregate production function is the maximum output that can be produced given the quantities of the factors of production.Note that, in what follows, lower case letters refer to plant level variables while the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Compound Growth Rate?The components of economic growth include: Physical Capital Human Capital Technology Physical CapitalThe category of physical capital includes the plant and equipment that firms use as well as things like roads (also called...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Solow Growth Model?he Solow Growth Model is a model used to measure economic growth. It analyzes changes in the level of output in an economy over time as a result of changes in the population growth rate, the savings rate, and the rate of technological...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Infrastructure?Infrastructure consists of the physical facilities and public works employed to allow for the development of systems. In economics, infrastructure usually consists of roadways, trains, buildings, etc. Related Topics Rule of Law relate to...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Capital Deepening?When society increases the level of capital per person, we call the result capital deepening. The idea of capital deepening can apply both to additional human capital per worker and to additional physical capital per worker.Recall that one...
