25 Marker Flashcards
Econ growth lead to higher living standards
Econ growth is the increase in real gdp and the increase in prod cap and potential national output. Higher living standards are achieved thru higher disposable income and gov policy’s to stimulate ad.
Output gaps measure the diff between real growth and the trend rate of growth. Real growth is how much the gdp is acc increasing ehere trend growth is the estimated level of growth. If a country had negative output gaps it often means that there is neg Econ growth. Output gaps can be achieved thru fiscal policy’s by stimulating ad diagram
However this leads to cost push Inflation
Explain how it occurs
Long term Econ growth is sustained thru increase of wulaitu and wuinatuty
New anda bed tech can over tole jobs of skills workers,
This will also lead to an increase in structural unemplyomnet as workers will replaced,
Due to this workers will be unable to afford stuff. This is further stimulated by the work of unaffordable houseimg and expensive child care which acts as barriers to be able to maintain higher standard of living.
This then is a regressive as it more effects lower income households as they are more likely to be working in factory’s and working with machinery, therefore it will lead to unequal distribution of wealth.
Decreased consumer confidence
The effect of the machinery will also have a negative effect on the city due to poluttion
However,
An increase in adnaveted techenidlojy will lead to a higher comparative advantage as courtiers will be able to produce a product cheaper and in a higher quantity thahb ither country
I’m conclusion can lead to some higher living standards but over all will lead to an
