Page 55 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 55
Session Unit 4:
15. Aggregate Output, Prices & Economic Growth, p.52
LOS 16.m: Describe sources, measurement, and sustainability of economic growth, p.71
1. Labor supply (population, immigration policy, labour force participation rate)
2. Human capital (education and skill)
3. Physical capital stock
4. Technology
5. Natural resources
Sustainability of Economic Growth, p. 72
Potential GDP = aggregate hours worked × labor productivity
Growth in potential GDP = growth in labor force + growth in labor productivity
The sustainable rate of economic growth is important because long-term equity
returns are highly dependent on economic growth over time.
