Economic growth

Potential output

________ refers to the possible level of real GDP if all resource would be used efficiently.

Invetstment expenditure

________- countries that invest higer proprotion of their GDP in capital investments are more likely to achive econoic growth.

Ecological degradation

________ can also be significant for long- term economic growth e.g fish depletion in the sea will reduce the output of the fishing industry fishermen, and farmers working on soil with poor quality will produce less.

tax revenues

Only ________ allows government to redistribute the income in the economy.

crude oil

Impact on environment- many countries have achieved high rates of economic growth with industries based on the extraction of resources, such as ________, trees, minerals, and so on.

Economic growth

________ is a sustaine incerase of the countrys real GDP over a specific period of time.

high rates of inflation

An increasing AD can cause ________ as the economy overheats.

Negative economic growth

________ occurs when there is fall in real GDP that could be associated with recession.

Labour productivity

________- refers to the output produced in a given time period.

Real economic growth

________- annual rate of change in the value of nominal GDP, after accounting inflation (changes in price levels)

Actual growth

________ refers to a short term growth which occurs when the economy moves towards its potential GDP by using more resources efficiently.

economic growth

Impact on income distribution- ________ creates greater disparities.