标题: Forecasting the long-term economic growth rate [打印本页] 作者: orang3eph 时间: 2013-4-29 08:43 标题: Forecasting the long-term economic growth rate
I’m hoping somebody can explain this to me; even though it kind of seems like a Level I question.
Assume the population is expected to grow by 2% and that labor force participation is expected to grow by 0.25%. If spending on new capital inputs is projected to grow at 2.5% and total factor productiity will grow by 0.5%, what is the long term projected growth rate?
Schweser sums all 4 components up to arrive at 5.25%. Why do you include the increase in population? It seems to me like you should just include the percentage of people who are increasing the labor force participation rate (as they’re the ones who will be increasing the economic growth rate): so .25 + 2.5+ .5.
Thanks作者: jonh 时间: 2013-4-29 08:44
The population growth means more people go to work even the participation rate is constant. It will increase GDP.
The participation rate is another side of coin, it will impact employment even if the population is constant.作者: JGovender 时间: 2013-4-29 08:46
more people means more labor more….more participation means more people participating in the active work force…two different concepts.
