GDP- total output for a whole nation GDP per capita- average output per person GROWTH long-run movement of real GDP per capita Real GDP per capita: is main indicator of standard of living Long Run Growth Nominal GDP = GDP at current price Real GDP = GDP at constant Calculate: quantity of output in the current X (multiplied by) price of output in a base year US vs China Growth During 1980-2010 China’s real GDP growth rate grew by 10% per year on average much higher than US rate After mortgage meltdown and GFC, china growth rate fell in 2009 slow growth of chinese market due to cooling property market, weak domestic demand, slowing industrial production, and easing govt and business investment Only an approximation Fairly accurate if annual growth rate is small (e.g few %s) equation above can only be used for consecutive years Growth: long-run movement of real GDP per capita
GDP- total output for a whole nation GDP per capita- average output per person GROWTH long-run movement of real GDP per capita Real GDP per capita: is main indicator of standard of living Long Run Growth Nominal GDP = GDP at current price Real GDP = GDP at constant Calculate: quantity of output in the current X (multiplied by) price of output in a base year US vs China Growth During 1980-2010 China’s real GDP growth rate grew by 10% per year on average much higher than US rate After mortgage meltdown and GFC, china growth rate fell in 2009 slow growth of chinese market due to cooling property market, weak domestic demand, slowing industrial production, and easing govt and business investment Only an approximation Fairly accurate if annual growth rate is small (e.g few %s) equation above can only be used for consecutive years Growth: long-run movement of real GDP per capita
ECON1020-Entire-Semester.docx