3.2 (Pt. 2) - Economic Growth Flashcards
1
Q
What is the main indicator of economic growth?
A
The main indicator of economic growth is the GDP (or Gross Domestic Product).
2
Q
What does GDP measure?
A
GDP measures the total value of production of goods and services in an economy over a period of time. This total value comprises of every transaction in Australia (excluding second-hand transactions).
3
Q
What does Economic Growth lead to?
A
As economic growth indicates an increase in GDP, it also leads to the increase of inflation rate and living expense.