Economic Growth

Flashcards covering key concepts related to Economic Growth.

Per Capita GDP

The measure of a country's economic output that accounts for its number of people.

Rule of 72

A method to estimate the number of years required to double the investment at a fixed annual rate of return.

Real GDP

The total economic output of a country adjusted for inflation, measured in 2005 chained dollars.

Potential Output

The maximum output an economy can produce without triggering inflation.

Output per Capita

The amount of economic output produced per person, also referred to as real GDP per capita.

Short Run vs. Long Run

A distinction in economics where short run focuses on immediate impacts and long run considers the sustained adaptation processes.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period.

Standard Scale

A scale for comparing data that uses equal intervals without distortion.

Ratio Scale

A scale that not only indicates order and equal distances but also has a true zero point.

Capital Investment

Spending on physical assets like buildings and machinery intended to improve future business performance.