Macroeconomics › Section G · Economic growth › Topic G.3
The components of economic growth
Growth in output per worker has three main ingredients: more and better equipment, more skilled workers, and better ideas about how to produce. Growth accounting asks how much each one contributes, and its answer is surprising.
In this topic
- Three ingredients
- Physical capital
- Human capital
- Technology in the broad sense
- Capital deepening
- Worked example: capital per worker
- Growth accounting
- Worked example: finding the residual
- What growth accounting finds
- A healthy climate for growth
- Common mistakes to avoid
- Key takeaways
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