Tài liệu Economic growth

Economic growth is
Often measured by the rate of change of real GDP
–although this has many deficiencies
–it omits output that is not bought/sold
e.g. leisure, pollution, congestion
–it also neglects income distribution
so higher GDP per capita does not necessarily mean greater happiness
–but it helps.

The production function .
shows the maximum output that can be produced using specified quantities of inputs, given existing technical knowledge
Output = f(capital
–labour
–land
–raw materials
–technology)