23. Production function and sources of growth

Interacting with graphs to learn more about sources of growth

Where does growth come from? Why does output per worker – or output per capita – go up over time? These are some of the most important questions facing macroeconomists today. You′ll learn to look at the production function for an economy to try to answer these questions.

Objectives

• Introduce the aggregate production function

• Illustrate two sources of growth: capital deepening and technological innovation

Click on the 'Exploration' link above to continue.