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economic growth |
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economic growthProcess by which a nation's wealth increases over time. The most widely used measure of economic growth is the real rate of growth in a country's total output of goods and services (gauged by the gross domestic product adjusted for inflation, or “real GDP”). Other measures (e.g., national income per capita, consumption per capita) are also used. The rate of economic growth is influenced by natural resources, human resources, capital resources, and technological development in the economy along with institutional structure and stability. Other factors include the level of world economic activity and the terms of trade. See also economic development. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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No references found | Recent developments within endogenous growth theory suggest that openness influences growth through the channel of imports (Romer 1990, 1992; Grossman and Helpman 1991; Rivera-Batiz and Romer 1991; Aghion and Howitt 1998; Baldwin and Forslid 2000). Written for students and scholars interested in growth theory, energy and ecological economics, this volume examines the shift from physical work by humans to the expenditure of fossil fuels to do the same tasks more efficiently, and whether or not future growth will be affected by the coming scarcity of natural resources. Moreover in the following paragraph, Solow makes an even more damaging statement as far as the conventional view of neoclassical growth theory is concerned: The neoclassical model allows in one important effect for the interaction between fluctuations and growth: fluctuations will surely perturb the rate of investment and that will necessarily affect the path of potential output (ibid). |
Growth theory |
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