Your task: Make a well written piece on Economic growth, productivity and human capital (3 sub headings) in Russia. use as recent of data as possible (last 10-20 years) Read and follow all below to guide your work! Contents you could talk about when analysing and discussing in your work

-Endogenous Growth Theory: Constant MPK Human capital Knowledge, skills, and training of individuals Human capital tends to increase in the same proportion as physical capital Research and development programs Increases in capital and output generate increased technical knowledge, which offsets decline in MPK from having more capital The drivers of productivity: Human capital Education Health Impact on economic growth

Institutions & Productivity: Institutions are the constraints (rules) placed by law and social norms on human behavior. These constraints help reduce transaction costs the costs associated with buying or selling merchandise borrowing money investing in a business Millions of transactions means: reducing costs can greatly improve aggregate economic performance.

Types of Institutions Formal institutions: Political institutions Legal institutions Informal institutions: social norms, conventions, social values, and culture. Enforced informally (e.g., peer pressure, moral obligations) Religion also plays a role in shaping social norms and values.

Importance of Institutions Productivity, economic development and growth of markets require supportive institutional structures such as: Property rights, legally binding contracts and rule of law Market creating institutions Incentive to invest and innovate Intellectual property rights Regulatory institutions Market regulating institution Market failuresImportance of Institutions Institutions for macroeconomic stability Market stabilizing institution Macroeconomic instability and the economy Social insurance institutions Market legitimizing institution Social insurance and safety nets-structural change Institutions to manage conflict Market legitimizing institution Fractionalisation and social conflicts-impac

Measuring Institutions Several indicators exist to gauge strength and quality of institutions Aggregate governance index Measures of property rights and expropriation risk (WDR - World Bank) Index of democracy, political rights and civil liberties Political instability Index of corruption Economic freedom index Structure: Introduction to the Section:

• Start with a short introductory text to the section as a whole, outlining the significance of economic growth, productivity, and human capital in the context of Russia's economy.

Economic Growth:

• Begin with an introductory text discussing the importance of economic growth in Russia.
• Present the first subsection with more detailed introductory text, followed by the first graph illustrating trends in economic growth in Russia.
• Include a Textbox outlining key economic theory related to economic growth.
• Provide analysis based on the data presented in the graph and the information from the Textbox. (this is where I would like a table filled with the required data to make any of the graph for example collect me the data for Russia and present it in a table that allows me to create the graph bellow:

Figure-3.4: Human Capital Index against GDP per hour worked (2000 Baseline) 125 120 115 Percentage (2000 Baseline) 110 105 100 95 3.55 3.6 3.65 3.7 3.75 3.5 Human Capital IndexFigure 3.6: Healthy Average Life Expectancy (HALE) for Ireland 8 828988 8AN HALE (years) 2000 2010 2015 2019 Male Female Source: World Health Organisation (2022)Examples Comparison of Single Factor Productivity Measures 60000 0.25 50000 0.2 40000 0.15 30000 GDP divided by the capital sto 20000 0.05 10000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 Year1. Identify the problem: The economy is not operating at its natural level of output, which means there is either a recessionary or inflationary gap. In this case, let's assume it's a recessionary gap, meaning output is below the natural level. 2. Choose the appropriate policy: In this scenario, the government can choose either monetary or fiscal policy to address the recessionary gap. Monetary policy involves the control of the money supply by the central bank, while fiscal policy involves government spending and taxation. 3. Shift the appropriate curve: Since the goal is to return the economy to its natural level of output, the government needs to shift either the Aggregate Demand (AD) curve or the Aggregate Supply (AS) curve. If the government wants to use fiscal policy, it can shift the AD curve by increasing government spending or cutting taxes. If monetary policy is chosen, the central bank can adjust interest rates to influence investment and consumption, thus shifting the AD curve. 4. Evaluate the impact of the policy change: After implementing the chosen policy, there will be short-term and long-term effects on the economy. For example, if the government increases spending, it can lead to increased demand, higher output, and potentially inflation in the short term. However, in the long term, it might lead to higher debt levels if not accompanied by revenue increases or expenditure cuts elsewhere. 5. Consider external factors: In June 2026, U.S. imports increase due to the elimination of trade restrictions on European goods. This could have various effects on the economy, such as changes in the balance of trade, domestic production, and employment levels. 6. Account for time lags: The impact of government policies often takes time to fully materialize. There are typically time lags between the implementation of a policy and its effects on the economy. For example, there might be recognition lags, implementation lags, and effectiveness lags