Economic Growth and Lasting Lessons
By the end of this chapter, you will be able to:
- Outline the rationale of modern supply-side policies and evaluate the effectiveness of such policies.
- Define economic growth and identify the three sources of economic growth.
- Interpret the information presented by an aggregate production function.
- Describe the causes of diminishing marginal productivity.
- Describe the insights of endogenous growth theory.
- Outline the issues involved in achieving sustainable long-run growth.
- Discuss the “lasting lessons” of macroeconomics.
In 1728, Jonathan Swift, satirist and author of Gulliver’s Travels, sowed an intellectual seed that bore fruit in a Washington, DC restaurant two and a half centuries later. ...