Economic Growth Flashcards
1
Q
What is economic growth
A
An increase in the volume of goods and services that an economy produces over time, measured in GDP
2
Q
How is economic growth calculated?
A
Real GDP(current year)-real GDP(previous year)/real gdp(prev year) all x 100/1
3
Q
GDP formula
A
Consumption + Investment + Govt spending + (exports - imports)
4
Q
What is fiscal policy
A
macroeconomic policy affecting resource allocation, income allocation and business cycle flattening
