Modules 37 - 40

A mathematical formula that tells us that the time it takes a variable that grows gradually over time to double is approximately 70 divided by that variable's annual growth rate.

• labor productivity

• rule of 70

• rule of 90

• productivity

Output per worker; also known simply as productivity.

• physical capital

• labor productivity

• productivity

• human capital

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

• labor force

• productivity

• human capital

• physical capital

Often referred to simply as capital—consists of manufactured (human-made) productive resources, such as equipment, buildings, tools, and machines, used to produce other goods and services.

• labor force

• human capital

• physical capital

• labor productivity

The improvement in labor created by the education and knowledge that is embodied in the workforce.

• technology

• human capital

• physical capital

• labor force

The technical means for producing goods and services.

• rule of 70

• technology

• physical capital

• human capital

A hypothetical function that shows how productivity (output per worker) depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology.

• aggregate demand

• labor force

• aggregate production function

• diminishing returns to physical capital

Exhibited by an aggregate production function when, holding the amount of human capital per worker and the state of technology fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity.

• Physical capital

• aggregate production function

• diminishing returns to physical capital

• human capital

Roads, power lines, ports, information networks, and other underpinnings for economic activity.

• Real GDP

• infrastructure

• physical capital

• human capital

When the value of an asset is reduced by wear, age, or obsolescence; also, when a currency becomes less valuable in terms of other currencies.

• physical capital

• depreciation

• supply-side fiscal policies

• appreciation