Economic Growth

Economic growth

Economic growth

when RGDP of a country increases over time

Indicator of EG and why

RGDP because EG is a quantitative concept

Real GDP

the total output produced in an economy

Real gdp per capita is

output per person

real gdp per capita is better indicator….

of the amount of standard of living

benefit of economic growth

increase real GDP, increase standard of living, increase national income, increase government revenue

short term economic growth

short term economic growth is caused mainly by increases in AD and increases in SRAS →correspond to expansion of real GDP in the business cycle diagram