Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Growth
Growth and the business cycle
Short-run economic
growth and the
business cycle
Growth and the business cycle
x
Production inside
Food
the production y
possibility curve
O
Clothing
Growth in potential output
Food
Now
O
Clothing
Growth in potential output
5 years’ time
Food
Now
O
Clothing
Growth in potential and actual output
Food
O
Clothing
Growth in potential and actual output
y
x
Food
O
Clothing
Growth and the business cycle
Potential output
National output
3
4
2 Actual
3
output
4
2 1
O
Time
The business cycle
Potential output
Trend
National output
output
Actual
output
O
Time
Growth and the business cycle
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK
9
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK
9 France
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK
9 France
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK Germany
9 France
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK Germany
9 France
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK Germany
9 France USA
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK Germany
9 France USA
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK Germany
9 France USA
Japan
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Growth rates in selected industrial countries
10
UK Germany
9 France USA
Japan
Annual growth rate (%)
8
7
6
5
4
3
2
1
0
-1
-2
Long-term economic growth
Long-term
economic growth
Long-term economic growth
UK economic growth
over the decades
UK GDP at market prices (1995=100)
120
110
100
Real GDP (1995 = 100)
90
80
70
60
50
40
UK GDP at market prices (1995=100)
120
110
100
Real GDP (1995 = 100)
90
80
70
60
50
40
Average annual percentage growth rate
in GDP per person employed
Output per person employed in 2000
relative to that in 1961
Productivity in selected countries, 1999 (UK = 100)
506789 EastWe
01234UKF rance
Long-term economic growth
A simple model of
economic growth
Economic growth
Long-term growth:
to steady-state
income
Output (Y), Investment (I), Depreciation (D) Steady-state output
Output (Y)
f
Y1
a Depreciation (D)
Y0
Investment (I)
g
I0
b
D0 c
O K0 K1
Capital stock (K)
Economic growth
Long-term growth:
an increase in
the saving rate
Effect of an increase in the rate of saving and investment
Output (Y), Investment (I), Depreciation (D)
m Y
Y2
f
Y1
n I2
h
I1
g
K1 K2
Capital stock (K)
Consumption An optimum saving rate
a b
O 100
Saving rate (%)
An optimum saving rate
m
C*
Consumption
a b
O s* 100
Saving rate (%)
Economic growth
Long-term growth:
technological
progress
Output (Y), Investment (I), Depreciation (D) Effect of embodied technological progress
p Y2
Y2
Y1
f
Y1
D
n I2
h
I1
g
K1 K2
Capital stock (K)
Effect of technological progress on growth rates
Higher rate
of technological
progress
Output
Lower rate
of technological
progress
Time
Effect of an increase in the saving rate,
with a given rate of technological progress
Steady-state
growth path 1
Output
Actual
growth path
Slope determined
by rate of
technological progress
Time
Effect of an increase in the saving rate,
with a given rate of technological progress
Steady-state
growth path 2
Steady-state
growth path 1
Output
Actual
growth path
Rate of saving
increases
at time t1
t1 Time