25 Economic Growth

A combination photo shows a city skyline of a developed nation juxtaposed with a busy street in a third world country.

Why are some nations rich and others poor?

Chapter Checklist

When you have completed your study of this chapter, you will be able to

  1. 1 Define and calculate the economic growth rate, and explain the ­implications of sustained growth.

  2. 2 Explain the sources of labor productivity growth.

  3. 3 Review theories of the causes and effects of economic growth.

  4. 4 Describe policies that speed economic growth.

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