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).

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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).

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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.

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