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Lesson 1235 of 1524

Macroeconomic Policy Around the World

Macroeconomic policy goals for most countries strive toward low levels of unemployment and inflation, as well as stable trade balances.

Practice this chapter

Macroeconomic policy goals for most countries strive toward low levels of unemployment and inflation, as well as stable trade balances. Economists analyze countries based on their GDP per person and ranked as low-, middle-, and high-income countries.

Low-income are those earning less than $1,025 (less than 1%) of global income. They currently have 18.5% of the world population.

growth consensus — a series of studies that show, statistically, that 70% of the differences in income per person across the world is explained by differences in physical capital (savings/investment). converging economy — economy of a country that has demonstrated the ability to catch up to the technology leaders by investing in both physical and human capital. East Asian Tigers — the economies of Taiwan, Singapore, Hong Kong, and South Korea, which maintained high growth rates and rapid export-led industrialization between the early 1960s and 1990…. middle-income country — a nation with per capita income between $1,025 and $12, 475 and that has shown some ability, even if not always sustained, to catch up to the technology leaders in high-income….

Worked example

What does “growth consensus” mean in Macroeconomic Policy Around the World?

  1. 1Use the wording this chapter gives for growth consensus.
  2. 2The book says: a series of studies that show, statistically, that 70% of the differences in income per person across the world is explained by differences in physical capital (savings/investment).
  3. 3Do not use the meaning of converging economy. That term means economy of a country that has demonstrated the ability to catch up to the technology leaders by investing in both physical and human capital.

Result: a series of studies that show, statistically, that 70% of the differences in income per person across the world is explained by differences in physical capital (savings/investment)

Why. That is the meaning this chapter gives for growth consensus.

Do not swap growth consensus and converging economy. growth consensus means a series of studies that show, statistically, that 70% of the differences in income per person across the world is explained by differences in physical capital (savings/investment). converging economy means economy of a country that has demonstrated the ability to catch up to the technology leaders by investing in both physical and human capital.

Practice margin

This chapter

A fresh set from this chapter only. Choose 10 or 20. Multiple choice and fill-in, with no repeat inside the set.