Economic Growth

Macro

Importance of Economics Growth:

1. GDP per capita is a better indicator for living standard
2. Anything that affects the long-run rate of economic growth with a small amount will have huge effects on living standards in the LR

Basic Supplements:

Growth rate of a Variable

$g$ represents the yearly growth rate. When the duration consists a lot of years, don’t use $\frac{y_n-y_m}{y_m}\ast 100\%$ directly.

The Accumulation of Capital Stock

And also face the Depression

The $\Delta k=sy-\delta k$ and $y=k^{\alpha }$: so $\Delta k=s{k}^{\alpha }-\delta k$

And this is the equation of the Solow Model