________: rising GDP means that people afford to buy more goods and services.
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Economic growth
________: a increase in real GDP over time.
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Economic growth
a increase in real GDP over time
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Deflationary gap
may be the result of a fall in economic growth or negative economic growth in the short run, and may be solved using demand management policies
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Household income
rising GDP means that people afford to buy more goods and services
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Short run in macroeconomics
Is the time period when the economy can change but the cost of production is held constant
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Long run in macroeconomics
time period when the price level in the economy can change and the cost of factors of production can change
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**Short run in macroeconomics**
Is the time period when the economy can change but the cost of production is held constant
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Actual output of the economy
is the level of output the economy archives with its current resource utilisation
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**Actual output will increase if**
There is an increase in AD, firms produce more, increases the utilisation of available resources
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**Long run in macroeconomics**
time period when the price level in the economy can change and the cost of factors of production can change
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Change in actual output
When there is economic growth in the short run
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**Positive consequences of economic growth**:
Reduced poverty
Greater employment
Availability of goods and services
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Growth rate formula
**Growth rate** = real GDP in Y1 - real GDP in Y2 / real GDP in Y1 \* 100
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Growth rate
the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period.
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Negative consequences of economic growth
Decreased sustainability
Income disparities
Inflation
Balance of payments
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economic growth
an increase in the amount of goods and services produced per head of the population over a period of time.
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