Page 50 - FINAL CFA I SLIDES JUNE 2019 DAY 5
P. 50
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.
