11) (from yr12) introducing economic development Flashcards
economic growth is often considered…
the most important objective in macroeconomics
how does economic growth occur in the short run?
macroeconomics. In the short run, this occurs when there is an increase in the size of a country’s real GDP. This may be caused by an increase in asgregate demand (AD shifting right), or an increase in aggregate supply (SRAS shifting right).
how does economic growth occur in the long run?
In the long run, the increase in real GDP is linked with an increase and/or improvement in the resources (factors of production) available to the economy. This will lead to a higher production capacity at full employment (Vfe) and will require the LAS curve to also shift right.
what 3 categories are global economies subdivided in?
i) developed il) emerging i) developing.
where are developed economies mainly located?
in western Europe and North America.
where are emerging economies mainly located?
in Asia, North Africa and South America.
where are developing economies mainly located?
Sub-Saharan Africa (known as SSA countries), though there are outliers in areas like the Caribbean and Pacific islands.
what are developed economies national output often dominated by?
the tertiary sector of the economy. This means that their main produce tends to be services.
what are emerging economies national output often dominated by?
secondary sector of the economy, meaning that their main produce tends to be manufacturing based. Many of these economies have become heavily industrialised in the last 30 years.
what aredeveloping economies national output often dominated by?
Many developing economies (not all) are still dominated by the primary sector, extracting natural resources from the land and sea. Examples of key industries are agriculture, mining, oil and gas extraction, fishing etc.
what is GDP like in developed economies?
are usually characterised by high levels of real GDP per capita.
what is GDP like in emerging economies?
GDP per capita is often far lower than developed economies but is growing.
what is GDP like in developing economies?
Real GDP per capita in these countries is very low and a high percentage of the population live in extreme poverty.
do emerging economies struggle with poverty?
Most emerging economies feature significant levels of income inequality and will still have pockets of extreme poverty.
developed economies:
USA
Japan
Germany
UK
Canada
South Korea
Italy
Norway
Ireland
Australia
New Zealand
