First Principles GDP – REAL GDP Growth Via Massive Investment
by Brian Wang from NextBigFuture.com on (#73M0Z)
The basics of Real GDP growth from first principles Real GDP measures the inflation-adjusted value of all goods and services produced in an economy. Its growth comes from three sources (the Solow growth accounting identity): More labor (hours worked or workers). More capital (machines, buildings, infrastructure). Higher productivity (total factor productivity, or TFP-output per unit ...