vu cs408 Mid Term Subjective Solved Past Paper No.1
vu cs408 Human Computer Interaction Solved Past Papers
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Where,
Y = Total GDP
L = Population
y = Per capita GDP
Taking log of both sides
ln y = ln Y - ln L
Taking derivative w.r.t. time
1/y (dy/dt) = (dY/dt)/Y - (dL/dt)/L
gy = gY - gL
Growth rate of per capita income = Growth rate of total output - Growth rate of population
Why Growth is an Important Macroeconomic Issue
It is obvious why growth is an important macroeconomic issue. Every government aspires to deliver a higher growth rate for the country. High growth rates means higher national income which means better living standards on average, which in democracies, means happier electorates and therefore increased chances of re-election for another term in office. However, while all countries might wish to achieve high growth rates, in practice, only a handful have been able to convert the wish into reality.
