Page 54 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 54
Session Unit 4:
16. Aggregate Output, Prices & Economic Growth, p.52
LOS 16.n: Describe the production function approach to analyzing the sources of economic growth, p.72
Growth in potential GDP = growth in
labor force + growth in labor
productivity
Meaning?
Baring Law of Diminishing Marginal
Productivity, Labor productivity can be
increased by either improving technology or
increasing physical capital per worker.
