Macroeconomics: Economic Growth part 1
By Hanomics on youtube.com
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In this step, you'll learn about what determines economic growth and what we should be worried about when looking at economic growth. Economic growth is the steady increase in aggregate output over time and is measured by output per person. The two main factors that determine economic growth are capital accumulation, which requires higher saving rates, and technological progress, which shifts the production function upward. Diminishing returns to capital means that as more capital is used, the extra output from it decreases. The slope of the production function is the marginal product of capital, which is the amount by which output increases when capital is increased by a small amount.
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