Economic Growth

0.0(0)
studied byStudied by 0 people
0.0(0)
full-widthCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/3

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

4 Terms

1
New cards

Definition of Economic Growth

An increase in the productive potential of an economy. It is usually measured by an increase in real GDP.

Economic growth means an economy can produce a greater output of g & s.

2
New cards

  • Costs of economic growth

  • Risk of Higher Inflation

  • House price inflation

  • Labour shortages

  • Environmental Effects/Negative externalities

  • Rapid Inequalities in Income & Wealth

  • Trade Imbalances/ Worsening BOP position

3
New cards

Benefits of Economic Growth

  • Higher standards of living

  • Employment Effects

  • Fiscal dividend (increased Tax revenue & reduced G spending)

  • The accelerator effect

  • Rise in productivity

4
New cards

Policies to Increase Economic Growth

  1. Fiscal Policy measures (taxes/gov spending)

  2. Monetary Policy measures (interest rates)

  3. Supply-Side policies e.g. setting educational targets

  4. Social and Environmental policies e.g. increases in the NMW rates