ECONOMIC GROWTH

Capital  -  Physical and intellectual property that is utilized by labor in the production of goods and services.

Capital Expenditure  -  Money spent on increasing the amount of capital in a firm or an economy.

Capital Stock  -  The total amount of capital in an economy or in a firm.

Convergence  -  The theory that all industrialized countries tend to approach one another over time in terms of GDP per capita.

GDP per Capita  -  Nominal GDP divided by the total population. This indicates the amount of a country’s total output that each member of the population theoretical has access to.

Golden Rule Level of Capital  -  The level of capital where consumption and savings are optimized.

Growth Level  -  The long term rate of growth.

Growth Rate  -  The short term rate of growth.

Human Capital  -  Intellectual property, like education and scientific discoveries, that affects the level of output in a firm or country.

Industrialized  -  Describes countries that have an infrastructure and government amenable to industrial development.

Infrastructure  -  Physical machinery and transportation that is in place to aid in industrialization.

International Market  -  The market for goods and services that spans countries.

Labor  -  Workers who utilize capital to produce output.

Labor Productivity Growth  -  An increase in the amount of output a given unit of labor can produce.

Nominal GDP  -  The total currency value of all goods and services produced in a national economy.

Open Market  -  A market for the sale and purchase of goods and services in which all countries may compete.

Output  -  Goods and services produced by firms.

Physical Capital  -  Machinery used by labor in the production of goods and services.

Production  -  The creation of output.

Production Capabilities  -  The capital that allows a given amount of potential output.

Productivity  -  The ability to produce output.

Prosperity  -  The creation of a high standard of living.

Savings Rate  -  The percentage of total income that is saved for future consumption.

Standard of living  -  The level of economic wellbeing enjoyed by members of a population.

Technological Progress  -  The advancement of technology over time due to scientific discoveries.

Trade  -  The purchase and sale of goods and services between entities.

Unemployment  -  The condition of being without a job but also actively searching for one.

Wage  -  Money paid or received in exchange for labor.