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Econ 4.3
Wednesday, April 14, 1999
Announcements: Homework is due on
Friday. Online quiz will be taken offline on Friday.
Lecture notes:
Consideration of Economic Growth
- Why are some of the oldest surviving
cultures in the world so poor? (ie. India, China)
- Alan Greenspan recently said,
"Competition is the necessary driving force toward
delivering a superior product or service. We should not
shy away from it. Colleges and universities are being
challenged to evaluate how new information technologies
can best be employed in their curricula and their
delivery systems."
Importance of Compound Economic Growth
Rates
Rule of 72
- Dividing the number 72 by a growth rate
yields the approximate number of years it takes for the
economy to double in size.
| Growth Rate % |
Years to Double |
| 0.0 |
Never |
| 0.1 |
720 |
| 0.5 |
144 |
| 1.0 |
72 |
| 1.5 |
48 |
| 2.0 |
36 |
| 2.5 |
29 |
| 3.0 |
24 |
| 3.5 |
21 |
| 4.0 |
18 |
| 4.5 |
16 |
| 5.0 |
14 |
|
